Wash and dry the squash, then slice it into ¼-inch pieces. Lay these out on a paper towel or dishtowel and pat dry with another towel to remove any moisture.
In a shallow bowl, mix the eggs and milk. In a separate bowl mix the flour, Italian seasoning, salt, and pepper.
Dip each squash slice into the egg mixture, then into the flour mixture.
Add the oil to a heavy frying pan or cast-iron skillet and bring the heat to medium high. Once it is hot, lay in as many squash slices as will fit. You will have to work in batches. Cook about 3 minutes on each side, then set on paper towels to dry.
The Italian fried squash is ready to serve. Top with fresh basil and serve with marinara sauce if desired.