Ah, that makes more sense.
Virtually all of mala's config can be summed up in just a few places.
1) Mala.ini (the main config point).
2) selection.ini (this appears to keep track of the last selected game in all game lists)
3) the plugins folder (Mala automatically loads plugins in this folder)
4) the layouts folder (but the Mala.INI has to point to a specific layout to use)
5) the game lists (MLG/MLJ, etc files in the same dir as mala).
There are also some assorted additional files in the mala folder
ML0, ML1, MLC, MLD, MLE, MLF, MLT, etc
As far as I know, most of those as "state tracking" files that mala writes to keep track of where you last were in the program when you close it. Most of those can be deleted and they'll automatically be recreated (though I'd always make a backup first, just in case).
Long story short, if you preserve the Mala.INI, selection.INI, plugins and layouts folders, that's almost all the mala config. The only thing that would be missing are the contents of the game lists, and it sure looks like one of your lists got corrupted somehow (from the log, it looks like Mala's getting stuck in a loop trying to parse something about the list).