Mix water and milk in a stock pot. Place on the stove to heat. Do not boil! The sausage needs to be chopped. If you use links, put them through a food chopper. If you use bulk, then chop and stir while cooking. The sausage should be fried in a cast iron skillet. When it is done, carefully strain and save the grease. Put the cooked sausage in the milk and water mixture. Put the grease back in the skillet over moderate heat. Stir in the flour, salt and pepper to make your roux. Cook this mixture until it will cling to the spoon and come off the skillet cleanly. When the milk and water mixture is just under boiling, stir in the roux quickly while turning off the heat to thicken the gravy. Serve over biscuits or toast.
