The Badgers (16-2, 3-2 Big Ten) came into the game allowing the second-fewest points per game among Big Ten teams and were fifth in field-goal defense, holding opponents to 41.2 percent, but Michigan shot the lights out, connecting at a 54.7 percent clip and going 7-for-13 from beyond the arc.
Wisconsin trailed by as many as 15 in the second half before making a late run that saw the Badgers cut the deficit to three on forward Frank Kaminsky's 3-pointer with 3:50 to play -- forcing a Wolverines timeout.
Badgers guard Ben Brust made it a one-point game on a 3-pointer with 1:40 left but Stauskas' 3-pointer with 48.1 seconds remaining put the Wolverines ahead 71-67 and Michigan went 6-for-7 from the free-throw line down the stretch, bringing an 11-game losing streak in Madison to an end.
The Wolverines' only other victory at the Kohl Center came on Feb. 27, 1999 -- the building's first season of operation.
Gasser's 17 points led the Badgers, who also got 14 each from Brust and Kaminsky as well as 10 from guard Sam Dekker.
Wisconsin has dropped consecutive games for the first time this season. The Badgers' last consecutive regular-season losses came last year when they fell to Purdue on March 3 and at Michigan State on March 7.
The Purdue game also marked the last time Wisconsin lost at home.
The Big Ten Conference's best-shooting team -- at just over 48 percent per game -- was hot early, hitting six of its first seven shots to take a 12-6 lead four minutes in.
Dekker kept the Badgers in the game, hitting four of his first six with three rebounds and Gasser made it a three-point game with a 3-pointer from the top of the key with 11:30 left in the half.
Michigan led by as many as 10 before the Badgers came back with a 10-4 run to make it a 32-28 game with 6:41 left in the half. The Wolverines built another double-digit lead before Wisconsin chipped away again but still trailed Michigan, 43-38, at halftime.
NOTES: Wisconsin entered the game having won 12 of the last 13 meetings with Michigan and it had an 11-game winning streak at the Kohl Center. ... The Wolverines' only victory at the Kohl Center came in 1999. ... The Badgers scored at least 70 points in their last nine games. ... Wisconsin began the day leading the nation with just 8.2 turnovers per game while Michigan was fifth with 9.2.