Combine the flour, ¼ cup sugar, baking powder and salt. Cut in the butter until crumbly. Stir in the dried cranberries and lemon peel. Pour in the buttermilk and stir with a fork until the mixture holds together. Gather the soft dough into a ball and gently knead a few times on a floured surface.
Pat out dough to an 8-inch circle and cut into 8 wedges. Place 2 inches apart on a greased baking sheet and brush the tops with the milk. Sprinkle with 1 teaspoon sugar.
Bake in a preheated 425 degree oven for 15-20 minutes, until golden. Serve warm.