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The 20-year-old signed a five-year contract at Veltins-Arena, and has since racked up 30 appearances for the club across all competitions, scoring three goals.
It has been reported that Liverpool have opened talks with Schalke over a possible deal for Kabak, who has a €45m (£41m/$53m) release clause in his contract which will become active next summer.
However, the German club have already turned down an approach for a prized asset from another high-profile potential suitor, with Milan told the centre-back was not for sale towards the end of the last transfer window.
Schalke sporting directorJochen Schneider told WAZ of the Rossoneri's attempt to sign Kabak:"Milan knocked at the very end of the transfer period in the summer, which was out of the question for us."
Kabak was sent off in the second half after receiving two yellow cards, and although the referee missed the incident with Augustinsson, the German Football Association took retrospectiveaction against him for unsportsmanlike behaviour.
The former Stuttgart star is set to sit out a DFB Cup first-round clash against Schweinfurt on Tuesday, but will beavailable for selection again when Schalke take in a trip to Mainz on Saturday.
Schneider is looking forward to seeing Kabak back on the pitch, having seen the defenderestablish himself as a key member of the squad since returning from lockdown.
“Ozan is simply a great player, he was one of the few bright spots even after the restart in May," the Schalke chief added.
"Now he will help us to become even more stable defensively and, with his strength at set-pieces, also more dangerous offensively."