Preheat your oven to 350°F (175°C). Lightly grease a 9x13 inch baking dish.
Brown the sausage in a large skillet over medium-high heat, breaking it into crumbles as it cooks, about 5-7 minutes.
Reduce heat to medium and sprinkle the flour over the cooked sausage. Stir continuously for about 2 minutes to cook the flour and create a roux with the sausage fat.
Gradually whisk in the milk, stirring constantly to prevent lumps. Add the garlic powder, black pepper, salt, and cayenne (if using).
Bring the gravy to a simmer and cook until thickened, about 5-7 minutes, stirring frequently. It should coat the back of a spoon. Remember, it will thicken more as it bakes. Remove from heat and set aside.
Open the biscuit cans and cut each biscuit into quarters. Arrange half of the biscuit pieces in the bottom of the greased baking dish, pressing them down slightly to create a somewhat even layer.
Pour half of the sausage gravy over the biscuit layer, then sprinkle with 1 cup of the shredded cheese.
Arrange the remaining biscuit quarters on top of the cheese layer.
In a bowl, whisk together the eggs and 1/4 cup milk. Pour this mixture evenly over the top layer of biscuits.
Pour the remaining gravy over the egg-coated biscuits, making sure to distribute the sausage evenly across the casserole.
Sprinkle the remaining cup of cheese on top, then drizzle with the melted butter.
Bake uncovered for 30-35 minutes until the casserole is bubbly and the top is golden brown. If the top starts browning too quickly, loosely cover with foil.
Let stand for 5 minutes before serving to allow it to set up slightly. Garnish with chopped chives or green onions.