Pound steak to tenderize; cut into serving-size pieces. Season with salt and pepper. Dust with flour. Combine milk and egg; dip meat into egg mixture and back into flour.
In a large skillet, brown meat on both sides in oil. Place onion in an ungreased 13-in. x 9-in. baking dish. Place meat over onion. Pour broth over all. Cover tightly and bake at 350° for 1-1/2 hours. Uncover; bake 20 minutes longer.