Preheat your oven to 425°F (220°C).
In a mixing bowl, whisk together 2 cups of flour, baking powder, and salt for the biscuits. Add the cold, cubed butter and mix using your fingers or a pastry cutter until it resembles coarse crumbs.
Pour in the milk and stir until just combined. Do not overmix. Turn the dough onto a floured surface and knead gently a few times.
Roll the dough to about 1-inch thickness. Using a biscuit cutter, cut out biscuits and place them on a baking sheet. Bake in the preheated oven for 12-15 minutes until golden brown.
While the biscuits are baking, prepare the sausage gravy. In a skillet over medium heat, cook the ground sausage until browned and fully cooked, breaking it apart with a wooden spoon as it cooks.
Once the sausage is cooked, sprinkle in the ¼ cup of flour and stir to combine, cooking for about 1 minute.
Gradually pour in the 2 cups of milk while stirring continuously to prevent lumps. Bring the mixture to a gentle simmer and allow it to thicken. Season with black pepper and salt to taste, cooking for an additional 3-5 minutes.
Once the biscuits are baked, remove them from the oven and let them cool slightly. Split them in half and ladle the warm sausage gravy over each biscuit.