In 1 qt saucepan melt butter. Cook and stir onions in butter, stir in chili powder. Remove from heat and let cool.
Separate dough into 20 biscuits. Dip both sides of biscuits into onion butter and place in pan forming 4 rows of 5 biscuits each. Spoon 1 tsp cheese in between each pair of biscuits. Spread any remaining butter or cheese over biscuits.