Preheat the oven to 350 degrees F (175 degrees C).
Add sausage to a large skillet over medium-high heat. Cook and stir with a spatula, breaking apart the sausage until cooked, 5 to 7 minutes. Remove to a paper towel-lined plate and set aside.
Whisk milk, water, and gravy mix together in the same saucepan. Cook over medium-high heat, stirring occasionally, until the gravy reaches a boil and thickens, about 8 minutes. Turn off heat and stir in the crumbled sausage.
Tear biscuits into pieces. Spread 1/2 of the biscuit pieces in an even layer in the bottom of a 9×13-inch baking dish. Pour the sausage and gravy mixture over the biscuits. Place the remaining biscuit pieces evenly on top. Sprinkle the dried cranberries over the top.
Bake in the preheated oven until the biscuits are golden, about 20 minutes.
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