Preheat oven to 450℉. Gather your ingredients so that you have everything close at hand on the counter or table.
Prepare the Ingredients
Slice bacon into small pieces. Pat-dry the pieces of beef with paper towels.
Peel and slice the carrots. Dice the onions. Mince the garlic. Set aside in prep bowls until ready to use. Slice the onions and halve or quarter the mushrooms. Refrigerate until ready to use.
Sear the Meat
In a large Dutch oven, cook bacon pieces in olive oil over medium-high heat until browned, 8-10 minutes. Remove with a slotted spoon and set aside on a large plate.
Add beef to hot Dutch oven and sear in remaining bacon grease. (Do not crowd the pan, but cook the pieces of meat in batches.) Season with kosher salt and freshly ground black pepper. As the pieces turn brown, remove them with slotted spoon and place on plate with bacon, repeating until all meat has browned.
Prepare the Stew
Add the sliced carrots and diced onions to the bacon fat and cook for a few minutes until lightly browned. Return seared meat and bacon to the Dutch oven and sprinkle with all-purpose flour. Toss to coat.
Place the Dutch oven in preheated oven and cook for 4 minutes. Remove from oven and toss the meat and vegetables once more. Return to the oven for another 4 minutes.
Remove from oven and reduce the oven temperature to 325℉. Add the beef stock, dry red wine, minced garlic, tomato paste, dried parsley, crushed thyme, and bay leaves. Stir to combine. Cover and return to oven to cook for 2 1/2-3 hours. Toward the end of the baking time, prepare the sweet onions and mushrooms.
Prepare Onions and Mushrooms
Heat the bottom of a large skillet with butter and olive oil. Add the prepared sliced onions and mushrooms and saute for 6-8 minutes, stirring occasionally until slightly browned. Add to the beef stew when it has finished cooking in the oven.
Serve over mashed potatoes or egg noodles. Serves 6-8.
Notes
*Unless otherwise indicated all butter used on this recipe site is salted.**Wine Suggestions: Louis Jadot Beaujolais Villages, Caparzo Brunello di Montalcino (Sangiovese), or Shafer-TD9 (Bordeaux Red Blend).