Combine first 3 ingredients in a plastic or paper bag; shake to mix. Place 2 or 3 pieces of chicken in bag; shake well. Repeat procedure with remaining chicken. Set 2 tablespoons seasoned flour aside.
Heat shortening in a large skillet to 350°; add chicken, and fry 5 minutes, turning frequently to brown on all sides. Reduce heat; cover and cook an additional 25 minutes or until tender and golden brown, turning once. Drain on paper towels.
Drain off pan drippings, reserving 2 tablespoons in skillet. Add reserved flour, stirring until smooth. Cook 1 minute, stirring constantly. Gradually add milk; cook over medium heat, stirring constantly, until thickened and bubbly. Serve gravy with fried chicken.