Preheat oven to 375 degrees Fahrenheit; grease a 9x13 baking dish.

Cook sausage and diced jalapenos in a skillet until meat browns.

Stir in flour; cook one minute. Slowly whisk in milk until gravy thickens.

Cut biscuits into pieces; place in dish.

Pour gravy over biscuits; top with pepper jack.

Bake 30 to 35 minutes, until bubbly and golden.