How to Make It
Using a sharp knife, peel the grapefruit, removing all of the bitter white pith. Working over a strainer set over a medium bowl, cut in between the grapefruit membranes to release the sections into the strainer. Squeeze 1 tablespoon of grapefruit juice from the membranes and reserve.
In a medium saucepan, combine the wine, shallots and bay leaf and boil over high heat until almost all of the liquid has evaporated, about 6 minutes. Add the chicken stock and boil until reduced to 1/2 cup, about 5 minutes.
Add the cream and paprika to the saucepan and bring to a boil. Reduce the heat to moderately low and simmer until thickened slightly. Discard the bay leaf. Remove the sauce from the heat and swirl in the butter. Season the sauce with salt and pepper and keep warm.
In a shallow bowl, beat the eggs with the water. Put the flour and panko in two other shallow bowls. Season the veal with salt and pepper. Dredge the veal in the flour and shake off the excess, then dip the veal in the egg mixture and coat with panko.
In a very large skillet, heat 1/4 inch of vegetable oil until shimmering. Add the veal and cook over moderately high heat, turning once, until golden brown and crisp, about 6 minutes; reduce the heat to moderate halfway through cooking. Drain the veal on paper towels.
Meanwhile, in a medium bowl, toss the grapefruit and the 1 tablespoon of reserved juice with the watercress, sage and capers. Drizzle on the olive oil, season with salt and pepper and toss well.
Transfer the veal to plates. Top with the salad and spoon the sauce on the side.