Stir together potatoes and milk in a large bowl. Microwave at HIGH 8 minutes; stir and microwave 5 to 7 more minutes. Let stand 2 minutes.
Stir in cream cheese, salt, and seasoned pepper, stirring until cheese melts and mixture is blended. Serve with Tomato Gravy.
To lighten: Use fat-free milk and reduced-fat cream cheese.