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Generously sprinkle salt and pepper all over steaks, then let steaks rest uncovered for 15 minutes at room temperature. Meanwhile, mince the shallots.
Melt 1/2 tablespoon butter and the oil in a large skillet over medium-high heat until almost smoking. Add steaks and cook until done to taste, about 3 to 4 minutes per side for rare and a little longer for medium-rare or medium. (Bone-in steaks take a few minutes longer to cook through than boneless.) If the pan begins to smoke or burn, lower the heat. Transfer steaks to a plate to rest while you prepare the sauce.
Add shallots to the skillet and cook over medium heat until lightly browned, about 1 minute. Add brandy to the skillet and use a long-handled match or igniter to set the brandy on fire. (Stand back when you do this.) Let flames die out, then add red wine and cook until reduced and syrupy, 2 to 4 minutes. Add stock and boil until reduced and thickened, 3 to 4 minutes longer.
Remove pan from heat and whisk in remaining 2 tablespoons butter and the chives. Serve steaks and sauce immediately with watercress.