Lay the chopped bacon in a large skillet over medium-high heat and cook, stirring occasionally, until crispy, about 8 to 10 minutes. Transfer bacon pieces to a paper towel-lined plate, reserving the fat in the skillet.

Keep the skillet over medium heat and ensure you have about 3 tablespoons of bacon fat in the pan; if needed, add a small pat of butter. Reserve any excess fat for another use.

Reduce heat to medium and sprinkle the flour into the bacon fat. Stir or whisk constantly for about 2 minutes until the roux turns slightly golden and loses its raw smell.

Slowly pour in the milk, about 1/2 cup at a time, whisking constantly until smooth before adding more. Continue until all the milk is incorporated.

Increase heat to medium and bring the mixture to a gentle simmer, stirring constantly. Cook for 3 to 5 minutes until the gravy thickens and bubbles form around the edges.

Stir in the black pepper, salt, and garlic powder (if using). Taste and adjust seasoning as needed.

Add the reserved crispy bacon to the gravy and stir to combine. Let the gravy simmer for an additional 1 minute to meld the flavors.

Check consistency; if too thick, whisk in a splash of milk, or if too thin, simmer a few more minutes. Serve hot over biscuits, mashed potatoes, or fried chicken.