Brown roast on all sides in shortening in a large Dutch oven; sprinkle with salt and pepper. Add water; bring to a boil. Reduce heat; cover and simmer over low heat 1 hour and 40 minutes or until tender. Transfer roast to a serving platter. Reserve pan drippings.
Sift together flour, baking powder, and salt; cut in lard with a pastry blender until mixture resembles coarse meal. Add milk, stirring just until dry ingredients are moistened.
Bring pan drippings to a boil. Drop batter by heaping teaspoonfuls into pan drippings. Reduce heat; cover and cook over low heat 15 minutes. Serve gravy and dumplings with veal roast.