If your 6 cubed steaks are more than 1/2” thick, you’ll want to pound it out with a meat mallet until thin. This will provide additional tenderizing as well as allowing for more even cooking. Season cubed steaks lightly with salt and freshly ground black pepper, to taste.
On a plate or shallow bowl add 1/2 cup all purpose flour, set aside. In a second shallow bowl, whisk together 2 large eggs and 1/3 cup milk
In a third shallow bowl, mix 25 saltine crackers, crushed, 1/2 cup all purpose flour, 1 teaspoon seasoned salt, 1 teaspoon garlic powder and 1/4 teaspoon cayenne pepper or paprika (if using.)
Dredge cubed steak in flour, then dip in egg mixture and then finally coat with saltine cracker mixture.
Continue the same procedure for the rest of the steaks and place them on a large baking sheet.
Heat about 1/2-inch lard in a large pan (preferably cast iron) over medium heat. Note: I prefer shortening or lard for these but use the oil you prefer. Cook steak in 2 batches for about 5 minutes per side. Continue with the rest of the steaks.
Remove steaks to a paper towel-lined baking sheet to drain excess oil.
For the sawmill gravy:
Once steaks are finished cooking, remove excess oil from pan (leaving about 1/4 cup remaining). Add 1/4 cup all-purpose flour to pan. Whisk and cook over medium heat for 1 minute to make a roux.
Gradually whisk in 1 1/2 to 2 cups whole milk and cook until thick (continually whisking.) If the gravy starts together too lumpy and thick, just add more milk and continue to whisk.
Whisk constantly and season to taste with salt and pepper, to taste. Note: I find this takes much more salt than you might assume so definitely taste as you go to get it the way you like it.
Pour gravy over steaks and enjoy!
Video
Notes
Depending on where you live, this cut of meat is called cube or cubed steak. It is usually a round steak that has been run through a mechanical meat tenderizer and you'll see tiny little holes punched in it (see my image below.)
Sometimes, even after it is tenderized, it is still thick. If that is the case, you are going to want to pound it down until it is thinner so that it cooks quickly and evenly.
I really prefer to use shortening or lard to fry these - it really deepens the flavor - but regular peanut or vegetable oil works fine too.
Salt and pepper are key. It sounds silly but to really get a super tasty white gravy, you need to season it really well. So add a little, then taste. Add a bit more, then taste. Keep doing this until it is just right and not bland.