Heat oven to 350. Line a baking pan w/ foil, spray foil w/ cooking spray. In lg shallow bowl, combine 1 cup flour and bread crumbs. In small shallow bowl, beat eggs and water.
In lg skillet over medium heat, heat oil. Dip chops in egg mix, then dredge in flour mix, coating evenly. Brown chops in oil on both sides until cooked through.
Remove chops from skillet. Place chops on baking pan. Top chops w/ red bell pepper strips. In saucepan, melt butter over medium heat. Slowly add 2 tbsp flour, whisking until browned. Slowly whisk in milk. Whisk until it thickens. Remove from heat. Stir in mushrooms and lemon juice. Season w/ salt and pepper. Evenly top chops w/ mushroom sauce. Bake 15 mins.