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CHICKEN CUTLETS:
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Chill a medium sized mixing bowl in the freezer.
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Place the boned chicken meat on a board and chop thoroughly with a sharp knife until fine or grind the meat in a meat grinder. (You can use a food processor for this but you must take extreme care not to over-process the meat as the texture of your cooked cutlets will be too heavy.).
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Add the meat to the chilled bowl. Add salt and white pepper to taste, the nutmeg and 5 tablespoons of the butter, melted. Mix well. Return the bowl and mixture to the freezer to chill once more while you prepare the dredging station. Do not freeze.
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Season the flour with salt and white pepper and place on a length of wax paper. Break the egg into a pie plate and beat with the vegetable oil and water. Place the bread crumbs on another length of wax paper.
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Divide the chilled mixture into 6 to 8 portions and shape each into a 1/2 inch thick cutlet. Dip one cutlet at a time into the flour, then in egg, then in bread crumbs. Press the crumbs gently into the cutlets then chill them until ready to cook. ( The cutlets may be made several hours ahead to this point. Keep cutlets refrigerated until ready to cook.).
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Heat the remaining butter in a large skillet and careful add the cutlets. Cook until golden brown on one side then turn and cook on the other.
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Serve with the Paprika Sauce.
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PAPRIKA SAUCE:
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Melt one tablespoon of the butter in a small saucepan and cook the onion until wilted. Sprinkle with the paprika, flour and thyme, stirring. Stir in the chicken stock, using a whisk and simmer about 3 minutes. (The sauce may be made several hours ahead up until this point.).
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Add the cream and bring to a boil. Add the lemon juice, salt and white pepper to taste and the cognac.
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Strain the sauce through a sieve. Return to the heat and stir in the remaining butter and the sour cream. Heat the sauce through but do not bring to a boil.
