I used to make this a lot in Germany. It is a family favorite, the meat is very tender. It goes with just about anything..Very good with cabbage, potatoes, potato salad, carrot salad or just glazed carrots, salad is good too...
Set up 3 shallow dishes. Place the flour in one, the eggs in another and the bread crumbs in the final dish.
Heat 1/2 inch oil in a large skillet to about 350 degrees.
Season the schnitzel with salt and pepper.
Working one at a time (or as many as can fit the pan without crowding); dip the schnitzel into the flour to cover completely on both sides; then dip in the egg until coated, then toss in the breadcrumbs until coated. Place the schnitzel into the hot oil; do not crowd; cook about 3 minutes on one side, then turn and cook the other side. (You want them golden brown; you also might want to swirl the pan to make sure the meat does not stick to the bottom, or use a fork to move it gently about. Be gentle though, you don't want to knock off the coating). Remove the schnitzel to a warm plate and serve with lemon wedges or Jaeger Sauce (mushroom gravy)
Jäger: Using the same pan as you made the Schnitzels in, fry the mushrooms until they begin releasing water. Remove them from the pan and set aside.
Add a little butter to the same pan. Add onions and bacon. Cook until onions begin to brown. Add mushrooms back to the pan, then add the broth and cream. Add salt, pepper, and thyme. Bring mixture up to a simmer, and continue simmering until liquid has noticeably reduced (about 15-20 minutes) - stir occasionally.
Stir in milk into the sauce until the sauce reaches the desired consistency (the sauce shouldn't be too thin and be creamy). Remove pan from heat. Stir in 2/3 of the chopped parsley. Add additional salt and pepper as needed.
To serve, place a Schnitzel on a plate and top with the sauce. Sprinkle some chopped parsley over the sauce. You can fix with or with out Jäger