Combine the thyme and olive oil with a mortar & pestle. Rub the oil over the lamb and season well. Set aside.
In a large saucepan fry the eggplant in a little oil and cook til soft. Remove & drain on paper towel.
Saute the onion for 2 minutes then add the garlic. Cook for a minute then add the zucchini & capsicum. Once softened, deglaze the pan with the red wine. Add the cooked eggplant, pine-nuts, capers, sultanas & red wine vinegar. Stir in the tomato paste & drop in the bay leaves. Reduce the heat and simmer for 20 minutes.
While the Caponta is cooking, tear the basil leaves into a mortar & bash with the pestle while adding olive oil. Season with salt & pepper.
Heat a ridged griddle plate or bbq hotplate til it starts to smoke. Add the lamb cutlets. Leave to sizzle for 3 minutes before turning & cook for a further 3 minutes. Rest the meat for about 5 minutes. - The meat ideally should be served medium-rare.
To serve, spoon the Caponata onto a plate, place 2 cutlets on top & drizzle with the basil oil and a wedge of lemon.