Cook sausage in large skillet over MEDIUM-HIGH heat 8-minutes or until thoroughly cooked, stirring frequently. Drain, reserving drippings; place sausage in bowl. If necessary, add enough oil to reserved drippings to measure 1 tablespoon. Return drippings to skillet.
Add flour and pepper to skillet; stir with wire whisk until well blended. Cook over MEDIUM heat 6-8 minutes or until browned, stirring constantly. Gradually stir in milk; cook and stir 3-5 minutes or until mixture thickens and comes to a boil.
Add sausage; cook 1-2 minutes or until thoroughly heated, stirring frequently. Serve over biscuits.