Chicken Fried Steak with White Gravy

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1 1/4 pound boneless round steak, fat trimmed and pounded a 1/4-inch thick

1 1/2 cups buttermilk

Kosher salt and freshly ground black pepper

2 1/2 cups all-purpose flour

1 tablespoon garlic powder

1 tablespoon onion powder

1 tablespoon sweet paprika

1 teaspoon cayenne pepper

Canola oil

1/2 pound slab bacon, cut into lardons

2 heaping tablespoons all-purpose flour

2 cups whole milk, heated

2 tablespoons heavy cream

Finely chopped fresh thyme

Salt and freshly ground black pepper

Fresh thyme sprigs