Soak the rice noodles in cold water until softened. (This can be done several hours ahead of time.) Strain and reserve until needed.
Heat oil in a medium sauepan. Deep-fry the diced tofu until crisp and golden. Drain in a paper towel and set aside to cool. Reserve. Add the peanuts and fry for 30 seconds. Remove and set aside with the tofu.
In a small skillet, heat 1 tablespoon butter. Cook the scrambled egg and milk mixture to a medium consistency. Season with salt. Place in a plate and allow to cool. Chop coarsely and set aside until needed.
In a wok, over high heat, add the peanut oil. When almost smoking, stir-fry the lemongrass, green chiles, shallots, ginger, kafir lime, cilantro, and shrimp for 1 minute or until shrimp change color. Add the softened noodles, half of the bean sprouts, fried tofu, scrambled eggs, Sauce 1 and Sauce 2. Continue to stir-fry until noodles have flattened and blended with the sauce.
Transfer Pad Thai to serving plate. Top with the remaining bean sprouts, cilantro, green onions and chopped peanuts. Serve a wedge of lime on the side.
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