In a small bowl, combine the softened butter, smoked paprika, chili powder, garlic powder, onion powder, cayenne pepper, and lemon zest. Mix until well combined and smooth.

Place the compound butter on a sheet of parchment paper. Roll it into a log, twist the ends to seal, and refrigerate until firm, about 30 minutes.

Remove the New York strip steaks from the refrigerator and allow them to come to room temperature, about 30 minutes. Pat the steaks dry with paper towels and season generously with salt and black pepper on both sides.

In a large skillet, heat the olive oil over medium-high heat until shimmering. Add the minced garlic and chopped thyme, cooking for about 1 minute until fragrant, being careful not to burn the garlic.

Carefully add the seasoned steaks to the skillet. Sear for 4-5 minutes on one side until a crust forms.

Flip the steaks and continue to cook for an additional 4-5 minutes for medium-rare, or until your desired doneness is reached. During the last minute of cooking, add a tablespoon of the smoked chili compound butter to the skillet, spooning the melted butter over the steaks.

Once cooked, transfer the steaks to a cutting board and let them rest for 5-10 minutes to allow the juices to redistribute. Slice the steaks against the grain and serve topped with additional slices of the smoked chili compound butter and fresh thyme sprigs.