For meat: Pound cutlets. Rub salt and pepper onto cutlet. Let stand for about 10 minutes. Dip cutlet in beaten egg and then in crumbs. Brown in a small amount of oil over low heat for approximately 10 minutes on each side.
For gravy: While meat is browning, saute the bacon and onion until golden brown. Add tomato paste and mushrooms and saute over low heat. Add the wine, water and seasonings. Let simmer for 5 minutes. Stir in the sour cream. Pour over Schnitzel.