Skillet Steak Bites in Mushroom Gravy

I am obsessed with these tender steak bites simmering in a savory mushroom gravy. I cannot rave about this incredible entree enough. Serve it over mashed potatoes for a meal that will make you oh so happy!

Update: This recipe was originally published in 2020 and has been republished with all new photos.

Cooking steak can be intimidating but I’ll show you how easy it is to whip up perfectly juicy steak bites in mushroom gravy. The steak sears quickly so you better believe this entree is a fast one. (We have things to do, don’t we? We want to be in and out of that kitchen pronto!)

I am a steak and potatoes girl and this entree makes my heart sing. Sure, it doesn’t come with potatoes but isn’t it just begging to be ladled over some? And tender mushrooms too? What a heavenly combo! But let’s talk about the gravy because that’s what takes this entree to the next level. Beef stock, balsamic vinegar (for tanginess and a hint of sweetness), garlic, thyme, rosemary, and seasoning. So much yes. Give me a glass of red wine and I’d call this the perfect meal.

Craving a quick mushroom recipe that cooks in very little time? You’ll be a fan of these Easy Air Fryer Sliced Mushrooms. How about another steak recipe? Try my Easy Sheet Pan Beef Tips with Veggies, Steak and Zucchini Stir Fry, or Air Fryer Steak Bites.

Ingredients for Skillet Steak Bites in Mushroom Gravy

• Olive or avocado oil: We’re sautéing the steak and sliced mushrooms in a little oil to get them beautifully browned. I like to use extra virgin olive oil but avocado oil also works well. Ghee or butter is another option.
• Sirloin steak: Sirloin is the best steak for this recipe because it’s inexpensive, readily available, and tender. You’re welcome to use New York strip, ribeye steaks, or fllet if you prefer. Thicker steaks will do best here. I do not recommend flank steak or skirt steak since those can be quite tough. A good steak dish starts with a good cut of beef.
• Sliced mushrooms: Baby portobello mushrooms are my favorite type of mushrooms for this recipe. Cremini mushrooms and white button mushrooms are great options too.
• Minced garlic: You can mince your own fresh garlic or use a jarred variety.
• Beef stock or broth: Both beef stock and beef broth can be used in this stir fry. Stock is typically made by simmering bones for hours while broth is made by simmering the meat instead of only the bones.
• Balsamic vinegar: The tangy balsamic vinegar adds so much flavor to our gravy.
• Arrowroot flour or cornstarch: You can use arrowroot flour or cornstarch to thicken this gravy.
• Seasonings: Dried thyme, dried rosemary, onion powder, garlic powder, salt, and black pepper are all you need to add more flavor to this delicious recipe.

How to Make Skillet Steak Bites in Mushroom Gravy

Heat 2 tablespoons of oil in a large skillet over medium-high heat. Add steak pieces in a single layer to the hot skillet. Season with salt and pepper. Sear steak until you have some beautiful browning. Remove from pan and set aside on a plate.

Rinse the mushrooms with water to remove any dirt or wipe with a damp paper towel. Pat dry with paper towels.

Reduce to medium heat. Add remaining oil (salted or unsalted butter works too) and sliced mushrooms to the skillet. Sauté until mushrooms are tender and golden brown. Add the minced garlic. Sauté until garlic is golden.

Add beef stock, balsamic vinegar, and seasonings. Stir to combine. Now add steak bites back to the skillet. Cover and simmer until gravy is heated through and steak is cooked how you like it. Cook time will vary based on how rare you want your steak. If you prefer medium-rare steak don’t incorporate the steak back into the pan until gravy is done. That way your steak just has a minute to warm up.

In a small container combine arrowroot flour or cornstarch and water. Shake. Set aside.

If thickening your sauce with cornstarch, add the cornstarch slurry into the skillet now. Simmer for 1 to 2 minutes until steak is cooked through and sauce has thickened.

If thickening your sauce with arrowroot flour, do not add the arrowroot flour slurry yet. First let the chicken pieces cook another 1 to 2 minutes. Once they’re done turn the stovetop burner off. Pour the slurry into the skillet and stir. You’ll notice the sauce begins to thicken immediately.

The best way to serve this up is to ladle over mashed potatoes or rice. Trust me, the whole family will be thrilled. Top with fresh herbs like thyme leaves to make it look extra special

How to Store Leftovers

Want to enjoy this entree the next day or later in the week? This is a great recipe for meal prep! Leftover steak and mushrooms can be stored in an airtight container in the refrigerator for up to 4 days. Reheat in the microwave or in a large skillet on the stovetop on low to medium-low heat until warmed through.

How to Serve

This gravy is outrageously good so be sure to serve this over something that can sop it all up! I recommend mashed potatoes (try my Light & Creamy Mashed Potatoes), white rice, or brown rice. Top with fresh rosemary or fresh thyme if you want to make it extra special.

Thinking of a green side? I recommend my Air Fryer Frozen Green Beans, Spicy Roasted Broccoli, Easy Roasted Broccoli, or Garlic Green Beans.

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