To make Sauce 1: In a small saucepan, combine all the ingredients and bring to a boil. Reduce slightly and set aside to cool. Reserve.
To make Sauce 2: In a small non-reactive bowl, combine all the ingredients and stir until well blended. Reserve.
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.
Recipe courtesy of Wolfgang Puck, 2003