Diner Chicken-Fried Steak

1/4 cup all-purpose flour
1/2 teaspoon salt
1/2 teaspoon pepper
1 pound cubed beef steaks
1 large egg, lightly beaten
2 tablespoons milk
1 cup saltine cracker crumbs
Vegetable oil
3 tablespoons all-purpose flour
1 1/4 cups chicken broth
1/2 cup milk
Dash of Worcestershire sauce
Dash of hot sauce

Combine first 3 ingredients; sprinkle on both sides of steaks. Combine egg and 2 tablespoons milk in a shallow dish. Dip steaks in egg mixture; dredge in cracker crumbs.

Pour oil to depth of 1/2 inch into a large, heavy skillet. Fry steaks in hot oil over medium heat until browned, turning once. Cover, reduce heat, and simmer, turning occasionally, 15 minutes or until tender. Remove steaks, and drain on paper towels. Keep warm.

Drain off drippings, reserving 3 tablespoons in skillet. Add 3 tablespoons four, stirring until smooth. Cook 1 minute, stirring constantly. Gradually add broth and 1/2 cup milk; cook over medium heat, stirring constantly, until thickened and bubbly. Stir in Worcestershire sauce and hot sauce.

Serve gravy with steaks and mashed potatoes.