Flatten steak to 1/4-in. thickness. Cut into 2 serving-size pieces. Place flour and bread crumbs in separate shallow bowls. In another shallow bowl, whisk egg and water. Coat steaks with flour, then dip into egg mixture and coat with crumbs.
In a large skillet, cook steaks in oil over medium heat for 1-2 minutes on each side or until meat reaches desired doneness. Remove and keep warm.
For gravy, stir flour into pan drippings until blended, loosening browned bits. Gradually stir in milk. Bring to a boil over medium heat; cook and stir for 2 minutes or until thickened. Season with salt and pepper. Serve with steaks.