Prepare the Steaks: Use a meat mallet to pound the cubed steaks to a uniform ¼-inch thickness if not already tenderized. Set aside.
Make the Marinade: In a medium-sized bowl, combine ½ cup milk, ½ cup sour cream, 2 tablespoons hot sauce, 2 beaten eggs, ½ teaspoon onion powder, and ½ teaspoon garlic powder. Mix well. Place the steaks in the marinade, ensuring they are fully submerged. Cover and refrigerate for at least 1 hour to allow flavors to soak in.
Prepare the Flour Dredge: In a shallow dish, mix 1 cup flour, ¼ cup cornstarch, 1 teaspoon garlic powder, 1 teaspoon onion powder, ½ teaspoon smoked paprika, ½ teaspoon black pepper, and ⅓ teaspoon salt. Stir until evenly combined.
Coat the Steaks: Remove the steaks from the marinade and let excess liquid drip off. Dredge each steak in the flour mixture, pressing the coating firmly onto the meat. For extra crunch, repeat the process by dipping coated steaks back into the marinade and dredging again.
Fry the Steaks: Heat ½ cup vegetable oil in a large skillet over medium heat until hot but not smoking. Fry the steaks in batches for 3-4 minutes per side, or until golden brown and crispy. Transfer to a paper towel-lined plate to drain excess oil. Keep cooked steaks warm in a low oven while frying the remaining pieces.
Make the Gravy: In the same skillet, remove excess oil, leaving about 2 tablespoons of drippings. Add 2 tablespoons of butter and melt over medium heat. Stir in 2 tablespoons of flour and cook for 1-2 minutes to remove the raw flour taste. Slowly whisk in 1½ cups whole milk and 2 tablespoons heavy whipping cream. Simmer until thickened, about 3-5 minutes. Season with salt and black pepper to taste.
Serve: Place the fried steaks on plates and generously ladle the creamy gravy over the top. Serve immediately with your favorite sides, such as mashed potatoes or green beans. Enjoy!