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.