SteaK: If you must, cubed steak works. However, you can get better results with round steak, providing that you trim any fat and gristle. You can make this with almost any kind of steak, provided you beat the crap out of it with tenderizer hammer and flatten it. (Filet mignon and veal work really well too, but it needs to be cut thin and flat.) You can slice the meat along the horizontal plane however you want, strips, or whatnot.
Egg or egg substitute.
Some milk
Flour
Breadcrumbs, italian (optional, for a more weinerschnitzel texture)
cooking oil
salt 1/4 teaspoon
black pepper 1/4 teaspoon
white pepper 1/4 teaspoon
bit of paprika
Take the egg stir in the milk. Combine the salt, peppers, paprika and dust the meat with it. Coat the meat in the flour/breadcrumbs mix, then dip in the egg and milk mix, then back in the flour again. You are going to make a mess, but this is OK! Heat the cooking oil in your cast iron skillet. You do have a cast iron skillet, don't you? If not, any deep skillet or pan will serve, for now. Go get a cast iron skillet later. Once the oil is heated, stab the meat with a fork and put it in the skillet. Dodge the grease. Fry the meat for a few minutes, flip it. Continue frying until everything is nice and brown. And now, the fun part.
You should have some oil left over with a bunch of brown bits. You need those bits! Guesstimate the amount of oil left in the pan, and dump about the same amount of flour in there and stir. The idea is to cook the flour for a couple of minutes, and keep stirring. While you are doing this, add your jalapenos if you want, fresh is best, pickled peppers, not so much.
After your couple of minutes, stir in some milk and water in equal amounts, 1/2 to 1/3 cup each and keep stirring. Lower heat, and KEEP STIRRING for a few more minutes until it starts to get thick on its own. Yer done!
Notes: Vary the oil and flour cooking time that's your roux) to adjust the base taste of the gravy. The longer you cook the flour without the other ingredients, the darker the flavor. Don't burn it! Then it tastes like crap. A nice blonde color is best.
The thinner the cut of meat, the faster it will cook, keep this in mind.
If you think the gravy is too thick, then fine, add water and milk until it isn't.