Cut the scrapple into small 1/“4 cubes.
Heat a large, deep, non-stick frying pan over medium-high heat for 3 minutes until it’s nice and hot.
Add the scrapple to the pan in an even layer.
Cook, undisturbed for 3-4 minutes, until golden brown and crisp on one side.
Flip scrapple with a spatula and cook 2-3 minutes longer, breaking up and moving around the pan as needed to make sure all sides are crispy.
Flip once more and cook 2 more minutes- were looking for mostly crisp/browned pieces before adding the other ingredients.
Add the butter to the pan, and toss to combine with the scrapple until melted/well incorporated.
Reduce the heat to low, and add the flour. Stir until well combined and no more lumps are present.
Cook flour/butter/scrapple mixture, stirring frequently for 2 minutes.
Using a whisk or wooden spoon, slowly add the milk to the flour/butter/scrapple mixture until well combined and no more lumps are present.
Add salt and pepper to taste, and cook 4-5 minutes on low- stirring occasionally, until thickened.
Serve over toast, biscuits or toasted English muffins. Garnish with chives, if desired.