Pound round steak with a meat mallet to tenderize. Combine flour, salt, pepper, garlic powder, and thyme in a shallow bowl. Pour 1/2 cup milk into another bowl. Heat oil in a large skillet over medium-high heat.

Dip steak into milk, then coat with flour mixture, shaking off excess flour, Add steak to hot oil and cook about 5 minutes or until browned, turn and brown on remaining side. Remove steak and keep warm.

Stir 2 tablespoons of the seasoned flour mixture into skillet. Cook, stirring, until bubbly. Stir in remaining milk and cook until thickened, stirring constantly. Season with salt and pepper, Serve gravy with steak.