Preheat an air fryer to 375 F.
In a shallow container, whisk together the egg, buttermilk and hot sauce.
In a separate container, whisk together the flour, garlic powder, salt, and paprika.
Dip each steak into the egg mixture, coating both sides. Remove, then dredge in the flour mixture, pressing it in gently to make sure that it is completely covered.
Repeat the dredging process by dipping each steak again into the egg, followed by the flour mixture. Set aside on a plate.
Spray the inside of the air fryer basket with nonstick spray, then place the steaks inside. Spray the tops with the spray.
Bake for 10 to 12 minutes until golden brown and cooked through, turning halfway through.
While the steak bakes, melt the butter in a skillet over medium heat. Once completely melted, add the flour, salt and pepper and mix together with a rubber spatula until there are no more lumps.
While whisking, slowly pour in the milk. Cook on low until slightly thickened, making sure to scrape the bottom so it doesn’t scorch. Adjust the seasoning with more salt and pepper, if necessary. Serve over the cooked steaks.