Preheat oven to 350°F (175°C) and grease a 9x13 inch baking dish.
Cut biscuit dough into 1-inch pieces and layer evenly in the baking dish.
In a skillet, cook pork sausage over medium-high heat until browned; drain excess fat, reserving 2 tablespoons.
Whisk flour into the sausage and fat for 1 minute; gradually add 2 1/2 cups milk and simmer until thickened.
Season gravy with salt and pepper, then pour over the biscuit pieces.
Whisk eggs with 1/2 cup milk and pour over the gravy layer.
Top with shredded cheddar cheese.
Bake for 35 minutes or until eggs are set and biscuits are golden brown.