Heat olive oil and butter in a large non-stick skillet over medium heat until ripples begin to form.
While the oil heats, whisk 1 cup flour, onion powder, paprika, cayenne, salt and pepper together in a medium bowl. Set aside.
In a separate bowl, whisk together the egg and water.
Season the steaks with salt and pepper. Dredge one steak in the flour mixture, then the egg and then back in the flour mixture to coat.
Add the steak to the skillet. Repeat with the remaining steaks adding more oil as needed. Work in batches if necessary as to not overcrowd the pan. (Overcrowding will cause the steaks to steam and the coating will not get crisp.) Cook the steaks for 3 to 4 minutes or until crisp and golden brown. Flip the steaks and continue cooking for an additional 4 minutes until golden. Transfer the steaks to a platter or baking sheet and cover with foil to keep warm.
PREPARE THE GRAVY:
Add butter to the skillet and sprinkle with flour. Whisk together in the pan and cook until golden. Slowly whisk in the chicken stock and continue cooking until thickened. Stir in the milk until smooth and beginning to thicken. Season with salt and pepper to taste.