Sprinkle veal chops with salt and pepper; dredge chops in 1/2 cup flour.
Heat oil in lg. skillet over medium-high heat. Brown veal chops 3 to 4 minutes on each side. Cover and cook 3 to 5 more minutes or until chops are done.Remove chops from skillet, and keep warm, reserving drippings in skillet.
Add onion to skillet, and saute 2 minutes. Add mushrooms; saute 5 minutes or until tender. Add 1 tablespoon flour, stirring constantly. Gradually add 1/2 cup half and half, bring mixture to a boil. Stir in cognac. Combine egg yolks and remaining 1/2 cup half and half; gradually add to skillet. Cook, stirring constantly 4 to 5 minutes or until sauce thickens. Spoon over veal chops.