I think this recipe came from Alton Brown of Good Eats. Be sure to tenderize the meat or it could be a little tough. (Soaking the meat in milk for a couple hours or overnight will also help tenderize the meat). You can also use your favorite seasoning to add to the flour if you prefer instead of using the garlic powder. I know it is blasphemy ;) to not make milk gravy with chicken fried steak, but we like the brown gravy with this.
With a paper towel, pat dry the pieces of meat on both sides. Lay meat on a large piece of waxed paper and season with salt and pepper.
Place flour and garlic powder onto a dinner plate or a large piece of waxed paper; mix to combine. Place eggs into pie plate and whisk slightly to break up the eggs.
Dredge the meat in the flour on both sides. Tenderize the meat by using a tenderizer tool, or use a meat tenderizing mallet and beat the steak until the meat is about ¼ inch thick.
Once the meat is tenderized, dredge the meat through the flour again, coating both sides, followed by dipping in the egg, and then back into the flour again.
Repeat with all pieces of meat.
Place the coated meat on a wire rack over a cookie sheet, and allow to sit for 10-15 minutes before cooking.
Place ¼ cup oil and 1 tablespoon of butter in a large skillet over medium heat. Once the oil is hot, add few pieces of the meat at a time. Cook each piece on both sides until golden brown; approximately 5-8 minutes on each side. Remove meat to a wire rack set in a sheet pan, and place in the warm oven. Repeat until all meat is cooked.
Add 2 tablespoon of oil and 1 tablespoon of butter to the pan and whisk in 4 Tablespoons of flour; mix until smooth. Add the chicken broth and whisk together until the gravy comes to a boil and begins to thicken. Add the milk and thyme and whisk for a few minutes more until smooth, creamy, and thickened. Season the gravy to taste with more salt and pepper, if needed. Optional: For additional yummy flavor; stir in 1 Tablespoon of good Cognac and 1 Tablespoon of butter the last 5 minutes. Serve gravy over steaks and mashed potatoes. Delish!