Buttermilk Country Fried Steak: My Secret Cream Gravy!

Ingredients

• 1.5 lbs (680g) beef round steak, cut into 4 cutlets, about 1/4 inch (6mm) thick
• 1 cup (240ml) buttermilk
• 1 large egg
• 1 tablespoon (15ml) hot sauce (like Tabasco)
• 1 teaspoon (5ml) black pepper
• 1 teaspoon (5ml) garlic powder
• 1 teaspoon (5ml) onion powder
• 1 teaspoon (5ml) salt
• 1 cup (125g) all-purpose flour
• 1/2 teaspoon (2.5ml) salt
• 1/2 teaspoon (2.5ml) black pepper
• 1/4 teaspoon (1.25ml) paprika
• 1/4 teaspoon (1.25ml) cayenne pepper (optional)
• 1/4 cup (60ml) reserved cooking oil/drippings
• 1/4 cup (30g) all-purpose flour
• 3 cups (720ml) whole milk
• 1/2 teaspoon (2.5ml) salt, or to taste
• 1/2 teaspoon (2.5ml) black pepper, or to taste
• Pinch of nutmeg (optional)