Season cubed steak lightly with salt and pepper.: The initial salt and pepper give the cube steak its base layer of flavor, and you should notice an immediate savory aroma against the raw meat. Light seasoning prevents the finished steak from tasting flat, and it helps create a seasoned crust when combined with the dredges. A common mistake is over salting, which can make the final dish too salty after the gravy is seasoned, so season with restraint and taste your gravy before final adjustments.
Place 1/2 cup flour on a plate.: Having the all purpose flour ready on a plate allows for quick, dry dredging that presents a matte, slightly powdery surface for the egg wash to bite into. This creates a rough texture that helps the next layers adhere. If the flour becomes clumpy or damp, replace it, because clumped flour will not produce an even crust and can lead to uneven browning.
Mix remaining 1/2 cup flour, Saltine crumbs, seasoned salt, and cayenne pepper in a shallow bowl.: Combining the dry crust components creates a balanced, aromatic mixture that will brown deeply and deliver both crispness and flavor. You should be able to see the flecks of cracker crumbs and smell the warm spice of the seasoned salt and cayenne. If you skip mixing them thoroughly, pockets of spice or crumbs can concentrate and create uneven taste or texture, so be sure the components are well blended.
Whisk together eggs and 1/3 cup milk in another shallow bowl.: The egg and milk mixture should look smooth and slightly frothy when whisked. This glossy wash is essential because it hydrates the flour on the steak and acts like glue for the cracker crumb blend. If the eggs are not well beaten, the mixture can coat inconsistently, leading to bare spots in the crust, so whisk until uniform.
Dredge cubed steak in flour, dip in egg mixture, and then coat with Saltine mixture.: After the initial dry dredge the surface will take on a faint dusting, which helps the egg adhere. Once dipped in the egg mixture the exterior becomes tacky, and the final coating of cracker mixture should cling evenly. Press gently so the crumbs adhere but avoid compacting them too much, otherwise the crust becomes heavy and bready rather than crisp. One mistake is skipping the initial dry dredge, which often leads to the coating sliding off in the pan.
Heat about 1/2-inch oil in a large pan (preferably cast iron) over medium heat.: Warm the vegetable oil until it shimmers, which indicates an ideal frying surface for creating a rapid sear. In a cast iron pan the oil will hold heat well and give uniform browning. If the oil is too cool the crust will absorb oil and be greasy, and if it is too hot the crust will burn before the meat cooks through, so aim for a steady medium heat.
Cook steak in 2 batches for about 3 minutes per side. Remove steak to a paper towel-lined plate.: As each piece hits the oil you should hear a clean sizzle that signals proper frying temperature. The crust will darken to a golden brown in those minutes and release easily when ready to flip, showing a firm, crisp exterior. Cook in batches so the pan temperature recovers quickly; overcrowding causes the oil temperature to drop and produces a limp, oily crust. If you notice uneven browning, adjust the heat slightly and transfer finished pieces to a paper towel lined plate to drain.
Pour oil that is left in pan through a fine-meshed sieve into a heat-proof bowl. Measure out 1/4 cup and return it to pan.: Straining the used oil removes loose crumbs and burnt bits, leaving a clean fat base for the gravy. Measuring back exactly 1/4 cup ensures the roux will be the right thickness for the amount of milk you add. Using too much or too little fat will change how the gravy thickens, so measure carefully and discard the remainder of the strained oil instead of reusing an unmeasured amount that could be too greasy or too little.
Add flour to pan and cook over medium heat for 1 minute. Gradually whisk in milk and cook until thick. Season to taste with salt and pepper.: This brief cooking of the all purpose flour in the warm fat removes the raw flour taste and produces a slightly nutty aroma. You will see the mixture bubble gently and begin to thicken a bit, and that is the start of your gravy's body. Cook it long enough to lose the floury smell but not so long that it browns deeply, since excessive browning will alter the gravy's color and flavor. Stir constantly to prevent scorching.
Gradually whisk in milk and cook until thick. Season to taste with salt and pepper: As you pour in the whole milk a smooth, glossy sauce will form if you whisk continuously, and the smell will shift to a warm, rich dairy aroma. The sauce will thicken as it simmers and coat the back of a spoon when ready. Taste and adjust with salt and pepper to balance the sauce, remembering that the gravy should complement but not overpower the crusted cube steak . A common misstep is adding the milk too quickly, which can create lumps in the gravy, so add it slowly and whisk steadily.