Melt the butter in a frying pan. Add the dried beef (shredded) and frizzle lightly. Sprinkle 3 tbsp flour over the dried beef. Stirring constantly, brown dried beef and flour until almost burned. Slowly add milk and stir until mixture boils. Add pepper. If thicker than desired, stir in an additional 1/2 cup milk. Serve on toast or mashed potatoes.