Preheat your oven to 350°F (175°C) and lightly grease a 9x13-inch baking dish to prevent sticking.

In a large bowl, combine ground beef, crumbled saltine crackers, 1 cup milk, Italian herbs, onion powder, garlic powder, cayenne pepper (optional), salt, and pepper; mix until all ingredients are evenly incorporated.

Form the beef mixture into approximately 8 half-inch-thick patties.

Lightly coat each steak in flour, tapping off any excess.

Heat a skillet over medium-high heat with a bit of oil if needed, then brown steaks on each side for about 2-3 minutes until they develop a golden crust.

Place the browned steaks in the greased baking dish, arranging them in a single layer.

In a bowl, whisk together the condensed cream of mushroom soup and the remaining cup of milk until smooth, then pour the gravy evenly over the steaks.

Cover the dish with foil and bake for 30 minutes; then remove the foil and bake for an additional 10 minutes, or until the gravy is bubbling and the steaks are fully cooked through.

Let the dish rest for a few minutes before serving hot, ideally with mashed potatoes or over rice.