Preheat oven to 400 degrees F.
In a small skillet, heat oil over moderate heat until hot but not smoking and cook shallots with salt and pepper, stirring, until golden, about 5 minutes. Add vinegar and boil until liquid is evaporated. Remove skillet from heat and stir in bread crumbs and thyme. Season with salt and pepper, to taste.
Season lamb with salt and pepper. Heat vegetable oil in a saute pan and sear the lamb on all sides. Transfer, rib side down, to a small roasting pan. Spread the meat side with mustard and pat on crumb mixture, making an even coating. Roast lamb in middle of oven until a meat thermometer registers 120 degrees F for medium-rare, about 25 to 30 minutes.
Carefully transfer lamb to a cutting board and let stand 5 to 10 minutes. Slice lamb into chops.
Wine Suggestions: Penfold Shiraz Rosemount Shiraz
Recipes courtesy Gourmet Magazine