Cut the steak into ½-inch strips, and remove any fat you don’t want.
In a shallow bowl, stir together the flour, baking powder, baking soda, salt, pepper, and garlic powder.
In another shallow bowl, whisk together the buttermilk, egg, and hot sauce.
Take a handful of the steak strips at a time and place them into the flour mixture, and coat them in the flour.
Shake off any excess and dip them into the egg mixture, letting excess drip off.
Last, place them back into the flour mixture and coat them well. Gently press the flour into the strips, so it sticks.
Place the strips, not touching on a parchment-lined sheet tray while you coat the remaining steak strips.
Add 1/4th inch of peanut oil to a cast iron or heavy bottom skillet. Heat until the oil reaches 325°F over medium heat.
Carefully add the steak strips to the pan and fry them for 5 minutes, flipping them halfway through. We are looking for them to be golden brown and crispy.
Take out the steak strips with tongs and place them on a wire rack set on a sheet tray to catch any drips. Repeat with the remaining steak strips.
Pour out any excess oil from the pan, leaving about ¼ cup in the skillet. Add the flour and whisk it into the oil. Cook for 1 minute.
Slowly stream in the milk while whisking constantly.
Season with the salt and pepper.
Continuing to whisk, bring to a simmer and simmer until thickened. Serve immediately with the steak fingers as a dipping sauce.