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Chicken Biscuits

['6 tablespoons (3/4 stick) unsalted butter, cut into 1/2" cubes', '1/4 cup vegetable shortening or lard', '4 cups all-purpose flour plus more', '2 tablespoons sugar', '2 tablespoons baking powder', '2 teaspoons baking soda', '2 teaspoons kosher salt', '1 teaspoon freshly ground black pepper', '1 3/4 cups buttermilk', '1 1/2 cups buttermilk', '1 tablespoon chopped fresh dill', '3 1/2 teaspoons kosher salt, divided', '1 3/4 teaspoons freshly ground black pepper, divided', 'Large pinch of cayenne pepper', '10 small boneless, skin-on chicken thighs', 'Vegetable oil (for frying)', '1 cup all-purpose flour', '6 tablespoons peanut oil', '1 large egg', '1 tablespoon baking powder', '1 1/4 teaspoons cayenne pepper', '1/2 teaspoon garlic powder', '1/2 teaspoon onion powder', '10 slices cheddar (optional)', 'Sausage Gravy (optional)', 'A 3" biscuit cutter']

Preheat oven to 400°F. Place butter and shortening in freezer for 10 minutes.
Blend 4 cups flour and next 5 ingredients in a food processor. Add butter and shortening. Pulse mixture until it resembles coarse meal, 20-25 pulses. Transfer mixture to a large bowl. Gradually add buttermilk while tossing mixture with a fork (mixture will not be completely incorporated). Knead in bowl with lightly floured hands just until dough forms, about 3 turns.
Transfer dough to a lightly floured surface. Pat out dough until 1" thick. Lift 1 side and fold it over. Gently repeat 5 more times. Roll dough to 3/4"-thick round. Using a 3" biscuit cutter, cut biscuits from dough. Gather scraps and repeat patting out and cutting biscuits for a total of 10 biscuits.
Place biscuits on a parchment paper- lined baking sheet, spaced 1"-2" apart. Bake until golden brown and a tester inserted horizontally comes out clean, 12-15 minutes. Transfer biscuits to a wire rack; let cool slightly. Serve warm or at room temperature. DO AHEAD: Can be made 8 hours ahead. Let cool completely. Store airtight at room temperature. Rewarm before serving.
Whisk buttermilk, dill, 1 1/2 teaspoons salt, 1 teaspoon pepper, and cayenne in a large bowl. Add chicken; turn to coat. Cover; chill at least 3 hours or overnight.
Pour vegetable oil in a large pot to a depth of 2". Attach a deep-fry thermometer to side of pot. Heat oil over medium heat to 350°F.
Whisk 1 1/4 cups water with remaining 2 teaspoons salt, remaining 3/4 teaspoon pepper, flour, and next 6 ingredients in a large bowl. Drain chicken well; pat dry with paper towels. Working in batches, dip chicken into batter. Fry chicken, turning occasionally, until skin is crispy and golden brown and chicken is just cooked through, 9-12 minutes per batch. Drain chicken on paper towels.
Split biscuits in half; place 1 bottom half on each plate. Top each with a cheese slice, if desired, then a chicken thigh. Spoon Sausage Gravy over chicken, if desired. Place biscuit top over.

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