Here's a Southwestern version of the South's (and Texas') gravy for country fried (or chicken fried) steaks. But don't you *dare* relegate this gem of a sauce to beaten chunks of beef alone, no Sir! Pour this on beef or pork steaks or roasts, meatloaf, chicken parts, hearty fish like trout or salmon, not to mention most veggies and potatoes. And don't forget the biscuits or dinner rolls to sop up those last few drops! Like the man said, "This would even make the bumper of a bus taste good!" Be careful, though, because it can become very habit-forming. Don't say I didn't warn ya!
In a small saucepan over medium high heat, heat the lard until just below the smoking point. Add the minced onion and sauté them until they have softened and are beginning to turn golden around the edges (about 5 minutes).
Whisk in the flour until well combined. Continue whisking or stirring for a minute or two to cook out the raw flour flavor. Slowly whisk in the milk. Add the green chiles. Whisking constantly, bring the gravy to a boil to thicken it, then reduce the temperature to a simmer. Season the gravy with salt and pepper.