Bacon 'n' Egg Gravy

In a skillet, cook bacon over medium heat until crisp; remove to paper towels. Stir flour into the drippings until blended; cook over medium heat until browned, stirring constantly. Gradually add water and milk. Bring to a boil; cook and stir for 2 minutes or until thickened. Add bacon, eggs, salt and pepper. Serve over toast.