Prepare the biscuits first. Place the flour, baking powder, salt, and sugar into a large bowl. Whisk together.
Grate the butter into the flour mixture and add the cheddar cheese. Using a fork, mix together lightly.
Add ¾ cup of the milk to the flour. Using a spatula, mix together until a shaggy ball forms. Transfer the dough to a lightly floured work surface. Using your hands, press the dough into a rectangle about 6x8 inches. Cut in half and stack together. Press the dough together again into about the same size rectangle. Cut in half and stack again.
Using a rolling pin, gently press out into a 6x12-inch rectangle. Cut into 8 pieces.
Transfer the biscuits onto a baking sheet and freeze for 15 minutes.
Preheat the oven to 425℉. Remove the biscuits from the freezer and bake for 10 minutes.
Prepare the sausage gravy. Heat the olive oil in a large skillet over medium heat. Add the breakfast sausage and cook for about 8 minutes.
Next, add the sage, paprika, salt, and pepper. Stir to combine.
Add the butter to the skillet. When it has melted add the flour. Stir together so the flour covers the sausage and cook for 1 minute.
Reduce the heat to low and whisk the milk into the skillet, making sure to scrap the sides and bottom.
Reduce heat to low and stir in the cream cheese.
Serve over biscuits.