01 - Pat mushrooms completely dry with paper towels. If mushrooms are large, halve or quarter them to create bite-size pieces for even frying.
02 - Arrange three shallow bowls: first bowl with flour mixed with garlic powder, smoked paprika, salt, and black pepper; second bowl with beaten eggs and milk whisked together; third bowl with breadcrumbs.
03 - Dredge each mushroom piece in the seasoned flour mixture, shaking off excess. Dip into egg mixture, allowing excess to drip off. Press firmly into breadcrumbs to coat thoroughly. Place breaded mushrooms on a tray.
04 - Pour vegetable oil into a deep skillet to a depth of 1 inch. Heat oil to 350°F, maintaining temperature throughout frying.
05 - Fry mushrooms in small batches for 3 to 5 minutes, turning occasionally, until golden brown and crispy. Remove with slotted spoon and drain on paper towels.
06 - Melt butter in a saucepan over medium heat. Stir in flour and cook for 1 to 2 minutes, whisking constantly, until mixture is bubbly and lightly golden.
07 - Slowly whisk in whole milk, continuing to whisk until smooth. Add salt, black pepper, garlic powder, and cayenne pepper.
08 - Simmer gravy over medium heat, whisking constantly, for 3 to 5 minutes until thickened to desired consistency. Taste and adjust seasoning as needed.
09 - Arrange crispy fried mushrooms on plates or platter. Ladle warm gravy generously over the top. Serve immediately while hot.