Heat oil in a large skillet over med high heat. Pound cutlets with a meat tenderizer to flatten them. Season them with salt & pepper, dredge them in beaten eggs & then coat evenly with bread crumbs. Place into skillet & fry until golden brown(1-2 min on ea side). Remove from skillet & drain on paper towels. Keeping meat warm in oven while you make the gravy.
Saute' bacon & onions until golden brown. Add tomato paste & mushrooms and saute over a low heat. Add wine, water & seasonings; let simmer for about 5 min. Stir in sour cream. Pour over Schnitzel just before serving.