Mix together the 1 cup flour, salt and white pepper in a shallow dish. Set aside. Heat olive oil in a large frying pan over medium-high heat. Dust veal with the flour mixture and shake off the excess. Fry for about 1 minute on each side, just to brown but not cook through.
Arrange the veal in a 20x30cm baking dish. Sprinkle cheese over the top. Wipe out the frying pan until clean then melt butter with 1/2 cup of sherry over low heat. In a small bowl, mix the 1/4 cup flour with 1/4 cup sherry and whisk into the pan. Continue whisking over low heat until the mixture is thickened. Season with salt and pepper to taste. Pour the sherry sauce over the veal and cheese.
Bake for 20 to 30 minutes in the preheated oven, until cheese is melted and gooey. Sauce will be runny. Soak it up with Italian bread!