Prep the steak: Pat steak dry with paper towels. Trim excess fat and cut into 1-inch cubes.
Season with 1 teaspoon salt, 1/2 teaspoon black pepper, 1/2 teaspoon paprika, and 1/4 teaspoon onion powder. Drizzle with 1 teaspoon oil and toss to coat. Let it sit while you prep the potatoes.
Prep the potatoes: Halve or quarter baby potatoes so pieces are about 3/4–1 inch.
Toss with 1 tablespoon oil, 3/4 teaspoon salt, 1/2 teaspoon pepper, 1/2 teaspoon paprika, and 1/2 teaspoon dried thyme or Italian seasoning.
Preheat the air fryer: Set to 400°F (200°C) for 3–5 minutes. A hot basket helps the potatoes crisp and gives the steak a nice sear.
Cook the potatoes first: Add seasoned potatoes in a single layer (work in batches if needed). Air fry at 400°F for 10–12 minutes, shaking halfway, until golden and almost tender.
Transfer to a bowl and cover loosely.
Cook the steak bites: Add steak bites to the basket in a single layer. Air fry at 400°F for 5–7 minutes, shaking once. Aim for medium-rare at 130–135°F or medium at 135–140°F.
Adjust time by 1–2 minutes based on your air fryer and steak size.
Make the garlic butter: While steak cooks, melt 4 tablespoons butter in a small skillet or microwave-safe bowl. Stir in minced garlic, a pinch of red pepper flakes, and chopped parsley. Warm just until fragrant, about 30–60 seconds.
Squeeze in a little lemon if you like.
Toss it all together: Combine hot steak bites and potatoes in a mixing bowl. Pour the warm garlic butter over the top and toss gently. Taste and finish with a pinch of salt and pepper if needed.
Serve: Garnish with extra parsley.
Add a wedge of lemon on the side and serve immediately.