Cook the bacon until crispy, about 8-10 minutes on medium heat or 15-20 minutes in the oven at 400°F. Crumble once cooled.

Combine flour, baking powder, salt, and sugar in a mixing bowl. Whisk to evenly distribute the dry ingredients.

Add the cold, cubed butter to the flour mixture and work it into coarse crumbs, leaving pea-sized chunks.

Fold in the cheddar, chives, and crumbled bacon until evenly distributed.

Pour in the milk and mix gently until a slightly sticky dough forms, being careful not to overmix.

Turn the dough onto a floured surface and shape into an 8-inch disc, about 1-inch thick. Cut into 8 triangles.

If the dough is warm, chill in the refrigerator for 15-20 minutes.

Whisk the egg and water for the egg wash, then brush over the scones.

Preheat oven to 375°F, place scones on a lined baking sheet, and bake for 20-25 minutes until golden.

Cool on a baking sheet for 5 minutes before serving.