Combine first 3 ingredients in a shallow dish; dredge steaks evenly in flour mixture.
Fry steaks, in batches, in 1/4-inch hot oil in a large nonstick skillet over medium-high heat 3 to 4 minutes on each side or until golden. Remove steaks, and keep warm. Carefully drain hot oil, reserving 2 tablespoons drippings in skillet.
Whisk gravy mix, milk, and ground red pepper into reserved drippings in skillet; cook over medium-high heat, whisking constantly, 3 to 6 minutes or until thickened. Serve gravy with steaks.