For biscuits, heat oven to 425 degrees. Combine flour, baking powder, and salt in medium bowl. Cut in 1/3 cup shortening using pastry blender (or 2 knives) until coarse crumbs form. Add milk. Stir with fork until blended.
Transfer dough to lightly floured surface. Knead gently 8 to 10 times. Roll dough 1/2-inch thick. Cut with floured 2-inch round cutter. Place on ungreased baking sheet.
Bake at 425 degrees for 12 to 15 minutes or until browned. Do not overbake.
For topping, heat skillet on medium-high heat. Add sausage, breaking it up into small pieces with fork. Cook until browned. Drain.
Melt 1/4 cup shortening in 2 quart saucepan on low heat. Stir in flour. Cook and stir on low heat 2 minutes. Add milk slowly, whisking constantly. Increase heat to medium. Bring to a boil, stirring constantly. Stir in cheese, salt, and pepper. Add eggs and sausage. Serve immediately over halfed biscuits.