Preheat the oven to 400 degrees.
In a large bowl, whish flour, sugar, baking powder, if desired pepper, and salt. Cut in the butter and shortening until the mixture resembles coarse crumbs. Add the milk, then stir just until it is moistened. Turn onto a lightly floured surface; knead gently for about 8 to 10 times.
Pat or roll the dough to about 1 inch thickness, cut with a floured 2 inch , biscuit cutter. Place 1 inch apart on an ungreased baking sheet. Bake until golden brown, for about 15 to 17 minutes.
In a large skillet, cook the pork sausage over medium heat until it is no longer pink about 6 to 8 minutes, breaking into crumbles. Stir in the flour until blended, gradually stir in the milk. Bring this mixture to a boil, stirring constantly. Then continue to cook and stir until the sauce is thickened about 4 to 6 minutes. Stir in the remaining ingredients. Serve with the warm biscuits.