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Season the veal with salt and pepper and spread mustard over top and sides of meat. Cover with bacon strips and set aside. Place onions and garlic in a saucepan with water and cook for 5 minutes. Remove and drain. Set aside.
Melt butter in a medium size skillet and sauté mushrooms. Season and set aside. Heat oven to 350°F (180°C). Place veal in a roasting pan together with onions and garlic and pour wine over meat. Roast veal until tender, approximately 25 minutes, basting frequently while cooking.
Remove meat from oven when tender, and discard bacon strips. Place onions and garlic in a bowl and combine with tarragon. Pour cooking liquids into a medium saucepan. Deglaze roasting pan with hot water and add it to saucepan. Return meat, onions and garlic to roasting pan and broil turning meat until browned. Remove meat when golden and leave onions and garlic a few minutes more, if needed. Keep meat covered.
Add Port wine to cooking liquid in saucepan and reduce for 5 minutes. Add onions, garlic and mushrooms. Thicken sauce with flour if needed (dilute flour in ¼ cup water). Cut veal in thick slices and arrange them on a serving platter. Scatter garlic, onion and mushrooms around and pour sauce over veal. Serve remaining sauce separately.
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