Place potatoes in a small saucepan and cover with water. Bring potatoes to a boil over high heat, then reduce heat to medium and let potatoes simmer until very tender, about 10-15 minutes. Drain potatoes and cover pot to let potatoes dry 5 minutes. Mash potatoes very well and set aside to cool.
Preheat oven to 425F. Line a baking sheet with parchment paper and set aside. In a large bowl combine, flour, baking powder, sugar, salt, and pepper. Work cheese and coconut oil into flour mixture with a fork or your fingers until crumbly. Mix in mashed potatoes and slowly add milk, gently stirring until a shaggy dough forms.
Turn dough onto a floured surface and knead several times until dough comes together. Pat dough out to 1-in thickness and use a 3-in biscuit cutter to cut biscuits. Place biscuits upside-down on prepared baking sheet, spacing them 2-in apart. Brush biscuit tops with butter.
Bake biscuits at 425F 15-20 minutes or until golden-brown. Remove from oven and serve warm. Enjoy!