Prepare the steaks: Pat the steaks dry with paper towels. Season both sides with salt and black pepper. Dry steaks sear better and develop a flavorful crust.
Sear the steaks: Heat olive oil in a large skillet over medium-high heat. Add steaks and cook to your preferred doneness, about 3 to 5 minutes per side depending on thickness. Remove steaks and keep warm.
Start the sauce base: Lower heat to medium. Add 2 tablespoons butter to the same skillet. Stir in shallots and cook for 2 minutes until softened.
Add mushrooms: Stir in sliced mushrooms and cook until golden brown and tender, about 5 minutes. Add garlic and cook for 30 seconds.
Deglaze the pan: Carefully pour in brandy or cognac. Let it bubble for 1 minute while scraping up browned bits from the skillet. These bits add incredible flavor.
Build the sauce: Add beef broth, Worcestershire sauce, Dijon mustard, and tomato paste. Stir until smooth and combined.
Simmer: Let the mixture simmer for 5 to 7 minutes until slightly reduced and concentrated.
Finish with cream: Stir in heavy cream and remaining 2 tablespoons butter. Simmer gently for 2 to 3 minutes until glossy and thickened.
Add brightness: Stir in chopped parsley and lemon juice. Taste and adjust seasoning if needed.
Serve: Return steaks to the skillet briefly or spoon Traditional Steak Diane Sauce generously over the steaks before serving.