Breakfast Casserole with Biscuits and gravy is our all-time favorite breakfast casserole recipe, made with frozen biscuits, eggs, cheese, and served with a cream sausage gravy.
Preheat oven to 375 degrees F. Coat a 9 x 13 baking dish with non-stick spray.
Meanwhile, brown sausage in a large, heavy skillet over medium heat, crumbling into chunks and cooking until no longer pink. Removed cooked sausage from skillet, setting it aside to drain on paper towels, reserving the drippings in skillet to make gravy.
In a large mixing bowl, whisk eggs with milk, cream, salt and pepper.
Layer 10 biscuit halves across the bottom of the prepared 9 x 13 baking dish; sprinkle half of the cooked sausage over the biscuit bottoms, then top the sausage with half of the cheese. Repeat once more with the remaining biscuit tops and the other half of the sausage.
Pour the prepared egg mixture over the layers of biscuits and sausage in the baking dish, then transfer the pan to the center rack of the preheated oven; bake for 30 minutes.
Remove casserole from the oven and sprinkle the remaining cheese over the top; bake casserole an additional 10-15 minutes, or until a knife inserted into the center of the casserole comes out clean and the center is no longer jiggly.
Let casserole stand for 10 minutes before cutting into squares. Serve topped with gravy, garnished with crumbled bacon.
Making the Cream Gravy
Place a large skillet over medium heat, add the butter or margarine to your pan drippings; add the flour, stirring constantly until this mixture turns from white in color to more of a tan color (this tells you your flour is fully cooked); remove the skillet from the heat. (very important!)
Remove the skillet from the heat! Now slowly add the evaporated milk, a little at a time, whisking constantly, never adding more until what you've added is fully incorporated. Now whisk in the regular milk in the same way, only adding milk as you need it.
Return the skillet of gravy to the burner over medium heat. Add the sage, then season the gravy to taste with salt, pepper, and red pepper flakes, as desired, whisking the gravy until it's creamy and simmering.