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Preheat the oven to 450°F.
In a bowl, mix the flour, baking powder, soda, salt, freshly ground pepper, and the green onions. Cut the butter (use your hands, a fork or a pastry cutter) into the flour mix until coarse crumbs form and you still have a few pea sized butter pieces. Add in the cream cheese by the small spoonful as well as the cheddar.
Add the milk and stir until just combined. Do not over mix. Turn out onto a lightly floured work surface and pat down until about 1 inch high. Use a small cookie or biscuit cutter (about 1 inch) and cut out biscuits. Place on a parchment paper lined baking sheet, top with an extra bit of freshly ground pepper and shredded cheddar and bake for 8-10 minutes or until slightly golden. Serve with gravy for dipping.
Over medium-high heat, in heavy bottomed skillet, cook the sausage, breaking into pieces, until brown and cooked through. Sprinkle on the flour, stir and cook for a minute or two. Pour the milk into the pan in a slow stream, stirring constantly.
Cook, stirring frequently until the gravy thickens. Season with salt and plenty of freshly ground pepper. Enjoy hot.