Sprinkle chicken with salt and pepper, dredge in flour to coat.
Heat oil to 375º in a 10 inch heavy skillet. Brown the chicken pieces for 12-15 minutes 4 at a time.
Drain the oil from the skillet, reserving 3 tablespoons pan drippings in skillet. Add 3 tablespoons flour to pan drippings, stirring until mixture is smooth. Cook for 1 min, stirring constantly. Gradually add milk to mixture in skillet, cook over medium heat, stir constantly, until thickened and bubbly. Salt and pepper to taste.
Serve gravy with chicken and mashed potatoes or rice.