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Season cubed steak lightly with salt and pepper.
Place ½ cup flour on a plate.
Mix remaining ½ cup flour, Saltine crumbs, seasoned salt, and cayenne pepper in a shallow bowl.
Whisk together eggs and ⅓ cup milk in another shallow bowl.
Dredge cubed steak in flour, dip in egg mixture, and then coat with Saltine mixture.
Heat about ½-inch oil in a large pan (preferably cast iron) over medium heat.
Cook steak in 2 batches for about 3 minutes per side. Remove steak to a paper towel-lined plate.
Pour oil that is left in pan through a fine-meshed sieve into a heat-proof bowl. Measure out ¼ cup and return it to pan.
Add flour to pan and cook over medium heat for 1 minute. Gradually whisk in milk and cook until thick. Season to taste with salt and pepper.