In a large bowl, combine the flour, baking powder, and salt.
Add the butter or lard and rub it into the flour mixture until it resembles coarse crumbs.
Gradually add the water or milk, mixing until a soft, but not sticky, dough forms.
On a lightly floured surface, knead the dough for 1-2 minutes. Flatten it into a circle about 1/2 - 1 inch (1-2 cm) thick.
If baking in the oven: Preheat oven to 400°F (200°C). Place the dough on a baking sheet and bake for 20-25 minutes, or until golden brown.
If frying in a pan: Heat a lightly oiled skillet over medium heat. Cook the bannock for 4-5 minutes on one side, then flip and cook for another 4-5 minutes, or until fully cooked through and golden brown.
Let it cool slightly, then slice and serve with honey, butter, or jam.
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