Heat 2 tablespoons butter in large nonstick skillet over medium-low heat. Add shallots and garlic; cook 25 minutes, until golden brown, stirring, and adjusting heat to avoid burning shallots. Add bay leaf, thyme, Port and broth. Bring to boiling; then simmer for 20 minutes.
Combine flour and water in small jar with tight-fitting lid. Shake well; pour into skillet. Bring to boiling; cook, whisking, 2 minutes. Remove from heat. Whisk in remaining tablespoon butter. Remove bay leaf.
Season steaks with salt and pepper. Heat oil in large nonstick skillet over high heat. Add meat; cook 5 minutes per side or until desired doneness, 160 degrees F for medium. Makes 6 servings.