The purpose of this paper is to develop a general method for using Finite Elements in the Steepest Descent Method. The main application is to a partial differential equation for a Transonic Flow Problem. It is also applied to Burger's equation, Laplace's equation and the minimal surface equation. The entire method is tested by computer runs which give satisfactory results. The validity of certain of the procedures used are proved theoretically. The way that the writer handles finite elements is quite different from traditional finite element methods. The variational principle is not needed. The theory is based upon the calculation of a matrix representation of operators in the gradient of a certain functional. Systematic use is made of local interpolation functions.