For Drop Biscuits: Preheat oven to 425° F.
In medium bowl, stir ingredients together with a fork until just mixed. Drop 12 large spoonfuls or 18 smaller spoonfuls of biscuit dough about 1-inch apart onto a greased baking sheet, smoothing biscuits into a more rounded form with the back of the spoon, if desired.
Bake for about 12 to 15 minutes or until golden brown. Serve warm.
For Sausage Gravy: In 10-inch skillet cook sausage until well done. Drain off excess fat.
Add butter and melt over medium-high heat; add flour and cook for 1 minute, stirring constantly.
Slowly pour in canned milk diluted with 12 oz. - 1 can) water, stirring constantly. Bring to a boil, reduce heat and cook until thickened, stirring occasionally. Season to taste with salt and pepper, as desired.
Serve sausage gravy ladled over warm, split biscuits.Servings: 6 gravy, 12 large biscuits