I know this sounds crazy. I thought the same thing! A guy I used to work with would bring this in for breakfast sometimes. Said his Granny had been making it for him since he was a boy. It's cheap and easy and if you REALLY like bologna, it rocks!
good quality bologna( i use the hunk garlic stuff) the cheap stuff just doesn't work well.
salt and pepper
1Take bologna and cut all 6-7 slices at the same time in about 1 inch squares.
Put oil in pan and lightly brown bologna.
2Add flour to thicken the oil. It's hard to say how much flour but it is just like making any other gravy. I add pepper at this step also.
3Combine milk and water and slowly pour it into the pan stirring constantly until you have gravy.
Salt and pepper to taste.
Serve over biscuits or toast.