Trim meat of fat and cut into serving pieces. Score edges to prevent curling and pound to tenderize if not previously done. Dredge meat in seasoned flour, then dip in beaten egg and water mixture. Dredge again in the flour mixture, being sure to coat both sides evenly with the flour. Set aside for 10 to 20 minutes to allow batter to stick.
Heat 3/4 to 1 inch of oil in large skillet over medium heat. When hot, place meat in oil as you would for chicken. For crisp crust, do not crowd pieces. Fry only 3 or 4 pieces at a time. When browned, turn and brown on other side.
Add water and reduce heat. Cover and cook for 1 hour, turning occasionally to avoid sticking.
When meat is tender, re-brown at a higher heat for a moment on both sides until crisp again. Then drain on paper towel and keep warm while making gravy.
TO MAKE GRAVY: Pour all but 1/4 cup oil from skillet. Scrape pan to loosen browned pieces of batter. Remove skillet from heat and stir in 1/4 cup seasoned flour. Place skillet over low heat; cook and stir flour until lightly browned. Slowly add 2 cups milk, stirring to reduce lumping. Add more seasoning if desired.
Serve with mashed potatoes or biscuits, or bread.