Season the veal chops with salt and pepper then dredge in flour, patting off excess flour. In a large saute pan over medium-high heat, add enough oil to coat bottom of the pan. Sear chops until golden brown, about 5 to 6 minutes per side. Remove from pan and set aside. In same pan, add more oil to coat bottom of pan and saute the diced onions, carrots, celery, and bay leaf until tender, about 10 minutes. Add the wine and scrape up the brown bits that cling to the bottom of the pan with a wooden spoon. When the wine has almost evaporated, add the broth, bring to a simmer and reduce sauce by half, about 10 minutes. Strain sauce through a fine mesh sieve into a bowl. Wipe the pan clean with a paper towel. Over medium heat, add the butter then chopped onion and mushrooms, and cook until tender, about 5 minutes. Season with salt and pepper, to taste. Add the veal and sauce back to the pan and bring to a simmer. Cook uncovered another 10 minutes, flipping the veal halfway through, until sauce thickens slightly. Serve over Southern Cheese Grits.
In a saucepan over medium heat, melt 1 tablespoon butter. Add the peppers and saute until softened, about 3 minutes. Add the grits and stir 1 minute. Whisk in 3 cups water, bring to a boil and stir until thickened, about 5 minutes. Remove from heat, stir in remaining butter and cheese. Salt and pepper, to taste.