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Brown the sausage in a large cast iron skillet. Remove from pan. Drain off excess grease.
Melt butter in the same cast iron skillet over medium-low heat. Whisk in flour; stir until thickened, 2-3 minutes. Whisk in the milk, about 1/2 cup at a time, until a smooth gravy comes together. Add salt, diced green chiles, and sausage back to the gravy. Stir to combine.
In a separate bowl, whisk eggs with milk and salt.
Preheat the oven to 350 degrees. Place half of the biscuits over the bottom of a greased 9×13 pan. Pour eggs over top. Sprinkle with cheese and dollop with some of the gravy (but save some gravy for later). Arrange with remaining biscuits. Bake for 35 minutes, until eggs are set.
Serve slices warm from the oven, with a scoop of that green chile sausage gravy over the top (thin it out with a little more milk so it’s semi-pourable, since it usually thickens as it cools). Brunch dreams realized.