Crumble the sausage into a frying pan over medium heat and cook until browned, stirring often.
Remove the sausage from the frying pan with a slotted spoon and reserve the pan drippings. If you have less than 1/4 cup pan drippings, add vegetable oil to reach 1/4 cup.
Heat the pan drippings and oil over medium-low heat. Gradually add the flour one tablespoon at a time and whisk. Stir constantly until the flour thickens and turns light brown.
Slowly add water and stir.
When the flour mixture is smooth, add milk, salt, and paprika. Stir until well blended.
Add the sausage and simmer until heated through. Do not let the gravy come to a full boil because boiling will curdle the milk.
Serve the sausage gravy with biscuits.
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Recipe Tips
The key to perfect sausage gravy is cooking the flour properly in the fat before adding liquids. This crucial step eliminates the raw flour taste and creates a smooth base. Unlike traditional recipes that use only milk, this version's combination of milk and water creates that signature Bob Evans pourable consistency that's never too thick or pasty.