Preheat your oven to 350°F (175°C). Lightly grease a 9×13-inch baking dish to prevent sticking.

In a large bowl, combine the ground beef, crumbled saltine crackers, 1 cup of 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 1/2-inch-thick patties. This recipe should make about 8 evenly-sized steaks.

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

Heat a skillet over medium-high heat, adding a bit of oil if needed. Brown the steaks on each side until they develop a golden crust, about 2-3 minutes per side.

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. Pour the gravy evenly over the steaks.

Cover the dish with foil and bake for 30 minutes. Remove the foil and bake for an additional 10 minutes, until the gravy is bubbling and the steaks reach 160°F on a food thermometer.

Let the dish rest for a few minutes before serving. Serve the hamburger steaks hot with mashed potatoes or over rice.