Spice up breakfast with creamy green chile sausage gravy! Bold, savory, and easy to make. Perfect over biscuits, eggs, or hash browns. It's only SIX ingredients and takes 10-15 minutes to whip up!
If you like soft homemade biscuits and sausage gravy you're going to looooooove it with green chile! We love to use fire roasted green chiles from New Mexico, but canned or frozen would work as well.

Save this Recipe! 💌
This is a breakfast, brunch, or dinner worth making. It got ten thumbs up from the family. I like my gravy on the lighter side, so I made the gravy with no cream. It's a pretty classic base gravy recipe with milk, and you can control how spicy you want it with the sausage and the green chile.
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Why You'll Love This Recipe
- Taste: Savory, creamy, and slightly spicy from the green chile and ground pepper and spices in the sausage.
- Ease: Beginner/intermediate, cooking of raw meat required and must be done in the correct order.
- Time: 10 minutes start to finish! So quick.
- Serves: Enough for 12 biscuits made with a 7cm biscuit cutter.
🛒 Key Ingredients

- Ground sausage - It has a few spices added in, we typically use mild or regular. Make sure NOT to use italian ground sausage!
- Milk - I use whole milk instead of cream for a lightened up, higher protein version. Still creamy!
- Green Chiles - you can use fresh (just make sure to cook them with the ground beef) canned, or fire roasted hatch green chiles, just like I use in my green chile enchiladas. We typically buy chiles that have already been roasted, but it's amazing to roast and peel them fresh!
See the recipe card below for full information on ingredients and quantities.
🥣 Choose Your Base
- Classic Milk Gravy + Green Chile (Country style gravy)
- ideal for biscuits and chicken fried steak.
- Sausage Green Chile Gravy (breakfast brunch)
- peppery and rich, great for biscuits and eggs.
- Broth "Gravy" (Sauce hybrid)
- chicken or beef stock instead of milk, lighter version. Great for Smothered burritos, meats, or enchiladas.
✏️ Substitutions & Variations
- Peppers to use: Hatch, anaheim, poblano, jalapeño, just make sure you roast them for best results, or saute them with the ground sausage.
- You can use any plant based milk for these, the gravy will have a slightly different texture and may not be as creamy.
🧑🍳 Instructions

- Step 1. In a skillet over medium-high heat, cook sausage with salt and pepper and break apart as it cooks, 3-5 minutes until thoroughly browned and no pink is left. I don't drain the sausage, I save the drippings for the gravy but you can if you wish!

- Step 2. Add in the flour and cook for another minute so soak up the juices from the sausage. If you're using fresh green chiles, prep, chop, and add them here to cook.

- Step 3. Slowly pour in milk and stir. Heat to a low boil and simmer for another 2-3 minutes, stirring occasionally until thickened (gravy will thicken further as it cools).

- Step 4. Add in as much green chile as your heart desires, we usually add in about ½ cup medium heat chiles that are fire roasted from New Mexico.
TIP: If it's too thick after adding the green chiles, add 1-2 Tablespoons of milk, if it's on the runny side you can simmer another few minutes. It thickens as it cools, so keep that in mind!

- Step 5. Serve over freshly baked biscuits, in breakfast burritos, with cheesy hashbrown casserole, chicken fried steak, or sillet potatoes. Delicious!
📌 Troubleshooting
- Gravy too bland? - add salt/pepper or more green chile to your gravy, or add ½ teaspoon onion powder.
- Too thick? - heat may have been too high and boiled away the liquid, remove from heat and whisk in a splash or two of milk.
- Too runny? Make sure you bring to a low boil and simmer for 1-2 minutes to help the flour thicken the gravy. It thickens as it cools, so keep that in mind.
❄️ Make Ahead, Store, and Freezing Tips
Refrigerate: up to 3 days and reheat in a saucepan with a splash or two of milk before serving.
Freeze: 2-3 months, after thawing will need a good stir and a little more milk when reheating. Freeze separately from biscuits.

❓Frequently Asked Questions
Yes, you can use plant based milk or chicken broth, it just won't have quite the same creamy texture as dairy.
Mild: young hatch chiles or anaheim peppers.
Spicy: Mature hatch or jalapeño or serrano peppers.
🌶️ Serving Ideas
- My FAVORITE thing to add to these is hot honey or maple syrup drizzled on top with biscuits!! So delicious I could weep.
- Add ½ cup diced onions to the ground sausage for even more flavor!
- Add a splash (or two) of cream to make the gravy a little more rich without overdoing it.
☀️ More Delicious Breakfast Recipes
Did You Try This Recipe? ⭐️⭐️⭐️⭐️⭐️ Make sure to leave a star rating and a comment below the recipe card. I love hearing from you, and it is so helpful to other readers! Better yet, share it with family and friends. Thank you!!
📝 Printable Recipe

Green Chile Gravy
Ingredients
- 1 lb ground sausage (mild)
- 1 teaspoon salt
- 1 teaspoon ground pepper
- ⅓ cup all purpose flour
- 3 cups whole milk
- ½ cup green chiles
- 12 biscuits to serve with
Instructions
- In a skillet over medium-high heat, cook 1 lb ground sausage with 1 teaspoon salt and 1 teaspoon ground pepper and break apart as it cooks, 3-5 minutes until thoroughly browned and no pink is left.(If you're using fresh green chiles, prep, chop, and add them here to cook. )
- Add in ⅓ cup all purpose flour and cook for another minute so soak up all of the juices from the sausage.
- Slowly pour in 3 cups whole milk and stir. Heat to a low boil and simmer for another 2-3 minutes, stirring occasionally until thickened (gravy will thicken further as it cools).
- Add in as much green chile as your heart desires, we usually add in about ½ cup medium heat chiles.
- Serve over freshly baked biscuits, in breakfast burritos, with cheesy hashbrown casserole, chicken fried steak, or skillet potatoes. Delicious!












Sara says
This is the easiest gravy recipe I've ever made. I love that it's not too rich and has more protein from the milk instead of cream. Perfect balance of spice from the chile!