Preheat the oven to 200°F. Place a wire rack inside a rimmed baking sheet and place it in the oven.
Season the steaks with 1 teaspoon salt and ½ teaspoon pepper. Let stand for 10 minutes.
Meanwhile, in a shallow dish, whisk together ¼ cup milk and the eggs. In another shallow dish, whisk together 1 cup flour, 2 teaspoons salt, garlic powder, and red pepper.
Dredge the steaks in the flour mixture pressing firmly on each side to coat. Dip the steaks in the egg mixture, then dredge again in the flour mixture, pressing firmly to coat. Set aside on a plate.
In a large cast-iron skillet, heat the oil over medium-high heat until the temperature registers 350°F on a deep-fry or candy thermometer.
Place 2 steaks into the skillet. Cook until golden brown on the edges, about 2 minutes. Turn and cook for an additional 2 minutes. Remove the steaks from the skillet and place in the oven on the wire rack to keep warm. Repeat with the remaining 2 steaks.
Very carefully pour out the pan drippings, reserving and returning 1/4 cup to the skillet. Whisk in ¼ cup of flour and place over medium heat. Cook until the mixture turns light brown in color, about 3 minutes. Gradually whisk in the remaining 2 cups of milk and the cream. Bring to a boil and cook until thickened, about 4 minutes. Stir in the remaining 1 teaspoon salt and remaining black pepper.
Remove the steaks from the oven and serve immediately with the gravy.