For the Chicken Fried Steak:

In one shallow dish, place flour, cayenne, pepper, and salt, and mix. In a second shallow dish, place egg, baking powder, baking soda, and buttermilk. (The mixture will foam.) Set a wire rack over a baking sheet. Preheat oven to 200 degrees. Set a paper sack on a large baking sheet. Heat oil to 375 degrees in your cast iron skillet as you bread the steaks.

Working with one steak at a time, gently pat steaks dry. Dip first in flour mixture and gently shake off any excess, then in the buttermilk mixture, letting excess drip off, then back into the flour mixture. Place steaks on rack. Reserve the seasoned flour, discard the excess buttermilk.

When finished, gently place steaks in the hot oil. Fry on the first side for about 5 minutes. Carefully turn when a deep golden brown and juices from the steak begin to appear on the top side. Continue to cook for another four to five minutes until the second side is a deep golden brown. Work in batches if necessary.

When the steaks are desired doneness, remove from pan and place on a baking sheet lined with a paper sack and place in oven to keep warm. Strain the oil from the pan, reserving the browned bits & oil. Return 3 tablespoons oil to the pan along with the browned bits, and make the gravy, below.

For the Country Gravy:

Over medium-high heat, cook onion with thyme (if using) until onion has softened and just beginning to brown, about 4 minutes or so, stirring often. Add flour, stirring and cook for a minute. Add stock, stirring, then milk, slowly, and rest of ingredients. Stir until bubbly and thickened. This gravy will appear a bit loose, but thickens up once off heat.