Step 1

For marinade: In a large bowl, combine the wine, cognac, onions, carrots, parsley, bay leaf, garlic, peppercorns and salt. Mix well and add the cubed beef. Cover and marinate in the refrigerator for 2 days.

Step 2

Preheat oven to 300 degrees F (150 degrees C).

Step 3

For Bourguignon: Strain the meat from the vegetables and marinade; reserve marinade. Dry meat with paper towels. Heat 2 tablespoons of the oil in a large skillet over medium high heat. Add the meat and saute for 10 minutes, or until browned on all sides. Transfer meat to a separate medium bowl with a slotted spoon and set aside.

Step 4

In the same skillet, add the bacon and saute until lightly browned. Transfer the bacon to the bowl with the meat. Drain the skillet and return it to the heat. Pour a cup of marinade into the skillet to deglaze the skillet, scraping the bottom to loosen up all the little bits. Return this liquid to the reserved marinade.

Step 5

Heat the remaining oil in the skillet. Add the onion and carrot from the marinade, along with the additional onion that you've chopped, and saute for 5 minutes, or until tender. Transfer this mixture to the bowl with the meat and bacon, again using a slotted spoon, and return skillet to the heat. Add the flour to the skillet, combining with the oil and stir until well mixed and brown, about 2 minutes.

Step 6

Now add the tomato paste, garlic, beef broth, reserved marinade and salt and pepper to taste. Bring to a boil and whisk to remove any flour lumps. Add this to the meat and vegetable mixture. Place entire mixture into a 9x13 baking dish.

Step 7

Bake at 300 degrees F (150 degrees C) for 3 hours, stirring occasionally and adding water as needed. Season with salt and pepper to taste.

Step 8

About 15 minutes before meat is done baking, melt butter in the skillet over medium high heat. Add the mushrooms and saute for 5 to 10 minutes, or until lightly browned. When meat is done, add the mushrooms to the meat mixture, stir well and let sit for about 15 minutes.