1. Heat the margarine or bacon drippings in a large skillet over medium heat. Stir in the flour with a fork or a whisk until it is lump free. Let the fat simmer for a moment or two, to toast the flour just a little bit.
2. Add the sugar, salt and little less than 1/4-teaspoon of pepper.
3. Add the tomatoes. Smash the tomatoes with your fork to make them sort of choppy or shredded. This gravy is not smooth, so you don't have to work real hard at smashing the tomatoes. The lumpy tomatoes are actually what give it the characteristic texture which Tomato Gravy is famous for.
4. When it begins to boil and thicken, add the milk gradually. Stir it all up and let it boil again. The milk will sometimes curdle a little bit. That is okay. Good with biscuits for breakfast or lunch, especially in the wintertime.
Makes about 2-1/2 cup of gravy.