Step 1

In a large skillet over medium heat, cook the bacon until it's crisp. Transfer it to a plate lined with paper towels to drain the excess grease. Editor's Tip: Add the chopped bacon in an even layer in the pan and stir it while it cooks to ensure even browning. To avoid burning (one of the most common bacon mistakes), keep your heat low and heat the pan slower so the bacon cooks all the way through and the fat melts.

Step 2

Stir the flour into the drippings until they're well blended, then cook the resulting roux over medium heat until it's browned, stirring constantly. Editor's Tip: Cooking flour and fat together makes a roux. Lower the heat slightly and sprinkle the flour evenly into the drippings for the best results, then whisk it constantly for about two to three minutes. You want the flour to brown and develop a nutty aroma.

Step 3

Gradually add the water and evaporated milk, and mix until the gravy is well combined. Bring the mixture to a boil, then cook and stir for two minutes or until the gravy has thickened. Season the gravy with salt and pepper, and stir in the cooked chopped bacon. Editor's Tip: Whisk the mixture continuously as you add the liquids for a smooth, lump-free, creamy consistency. Go lightly on the seasonings initially, as the bacon adds its own saltiness.