In a Dutch oven, cook sausage over medium heat until no longer pink, breaking into crumbles (do not drain), 8-10 minutes. Stir in flour, pepper, sugar and salt; cook and stir until thickened, 2 minutes. Stir in milks; bring to a boil. Reduce heat; simmer, uncovered, until thickened, stirring occasionally, 3-5 minutes. If desired, serve with biscuits.