Preheat oven to 375°F (190°C). Lightly grease a 9×13 inch (23×33 cm) baking dish.

In a skillet over medium heat, cook the sausage until browned and fully cooked, breaking it into crumbles as it cooks. Do not drain.

Sprinkle the flour over the cooked sausage and stir well to coat. Cook for 1–2 minutes to remove the raw flour taste.

Slowly add the 2 1/2 cups milk, stirring constantly. Bring to a simmer and cook until the gravy thickens, about 5–7 minutes. Add salt, pepper, and garlic powder if using. Remove from heat.

Cut each biscuit into quarters and place half of them into the bottom of the baking dish in a single layer.

Pour the sausage gravy evenly over the biscuit layer.

In a small bowl, whisk the eggs with 1/4 cup milk. Pour the egg mixture over the gravy.

Sprinkle shredded cheddar cheese on top, then finish with the remaining biscuit pieces.

Bake for 35–40 minutes, or until the biscuits are golden and the eggs are set. If the top browns too quickly, cover loosely with foil for the last 10 minutes.

Let rest for 5 minutes before serving.