Preheat your oven to 450°F (230°C).
In a skillet over medium heat, cook the Italian sausage until browned. Remove excess fat.
Sprinkle flour over the sausage and stir well. Cook for 1-2 minutes.
Gradually add milk, stirring constantly until the gravy thickens. Season with salt and pepper. Keep warm.
In a mixing bowl, combine flour, baking powder, and salt for the biscuits.
Cut in the cold butter until the mixture resembles coarse crumbs.
Add milk and stir until just combined. Do not overmix.
Turn the dough onto a floured surface and knead gently. Pat into a 1-inch thick round and cut out biscuits.
Place biscuits on a baking sheet and bake for 10-12 minutes or until golden brown.
Serve the sausage gravy over the warm biscuits.