Brown cutlets on both sides in hot vegetable oil in a large skillet. Remove cutlets from skillet, reserving pan drippings. Cut veal cutlets in half. Set cutlets aside.
Stir 2 tablespoons flour into pan drippings. Cook, stirring constantly, 5 minutes or until flour is browned. Add remaining ingredients, except rice. Cook mixture 1 to 2 minutes. Add reserved cutlets; simmer, uncovered, 30 minutes or until cutlets are tender. Remove bay leaf, and discard. Serve cutlets with sauce over hot cooked rice.