Buttermilk-Fried Chicken with Gravy

1 (3-1/2 - 4 lb.) broiler/fryer chicken, cut up
1 cup each buttermilk, all-purpose flour
1-1/2 tsp. salt
1/2 tsp. pepper
enough oil for frying

Gravy:
3 tbsp. all-purpose flour
1 cup milk
1-1/2 - 2 cups water
to taste: salt, pepper


    Place chicken in a large shallow dish.  Pour buttermilk over; cover and refrigerate 1 hour.  Combine flour, salt and pepper in a large resealable plastic bag.  Drain chicken pieces; add to flour mixture, 1 at a time, shaking to coat.  Shake off excess; let stand on waxed paper 15 minutes before frying.  Heat 1/8 - 1/4" oil in a large skillet; fry chicken until browned on all sides.  Cover and simmer, turning occasionally, 40 - 45 minutes, until juices run clear and chicken is tender.  Uncover, cook 5 minutes longer.  Remove chicken; drain on paper towels and keep warm.  Drain all but 1/4 cup drippings from skillet; stir in flour until blended.  Gradually add milk, then 1-1/2 cups water.  Bring to a boil over medium heat; cook and stir 2 minutes, until thickened.  Add remaining water, if needed.  Season with salt and pepper.  Serve with chicken.