A method for surface engineering a metal substrate involves mixing precursor powders with a polymer binder to create a coating mix and coating the substrate with the coating mix. The substrate is then heated via induction heating, with the frequency and duration of the heating being controlled so as to cause a reaction of the precursor powders to create one or more types of ceramics or intermetallics, evaporate the polymer binder, melt a portion of the substrate, and cause the synthesized compounds to mix with the substrate and form a compositionally graded surface modification. The compound(s) created by the reactions are mixed with molten portion of the substrate and upon re-solidification of the substrate, are distributed at decreasing percentages along a depth of the substrate so that their content varies from 100% at a surface of the substrate to 0% at a defined depth of the substrate.