[This may the be most echt-AW thread yet.]
Steely Dan should re-record Donald Fagen’s “the Goodbye Look” with a middle-eastern vibe and schtick along with the Dan’s mu chords and much jazz swing plus rock. Jewish irony and guilt in a modestly revised lyric.
http://www.hakwright.co.uk/steelydan/mu-major.html
https://www.youtube.com/watch?v=C-9I77afuOk

I always thought they’d do a great version of The Girl From Ipanema
Oh yes. The whiney outsider admiring chicas at a distance, or Walt in full “sex tourist” mode. Actually, there’s a LOT they could do in their style. Rather than old Band covers, maybe this is what the New York Rock and Soul Review should be doing.
Dylan’s Simple Twist Of Fate
Either that or Jessie J’s Price Tag
My first thought was this one
I can imagine this as a Steely Dan song.
The only cover they have done AFAIK is East St Louis Toodle-oo. Wah-wag guitar for plunger mute trumpet = genius.
Wah-wag – hmm, quite like that …
Live, they do a cover which turns into a Dannish vamp as Walt laconically introduces the band, a masterpiece of sardonic but loving wit, and thence into Bodhisatva: https://www.youtube.com/watch?v=8LD4ihbnWw0