Step 1

Cook bacon over medium low heat until golden brown and crisp, but not hard. Do not overcook. Remove bacon with a slotted spoon and set aside. Remove half of the bacon drippings and set aside.

Step 2

Combine flour, salt and pepper in a large bowl and stir to combine. Add beef and toss with your hands to coat.

Step 3

In a large Dutch oven or heavy duty pot, heat bacon fat over medium high heat until hot, but not smoking. Add ½ of the beef and spread out to cover the bottom of the pan. Cook, undisturbed until the beef is golden brown on the underside, about 5-7 minutes. With a large metal spatula, flip beef to uncooked side and cook until second side is golden brown. Remove with a slotted spoon to a clean plate. Add the rest of the bacon fat to pot. Heat until hot, add remaining beef and repeat cooking process as directed above.

Step 4

Once second batch of beef is browned, return first half of beef to pan. Add onion and garlic and cook for 2-3 minutes. Add tomato paste and 1 of cup wine. Bring to a boil then lower heat to maintain a low simmer. Continue cooking, stirring occasionally to loosen brown bits from bottom of pan. (I like to use a thin bladed metal spatula for this.) Simmer until most of the wine is absorbed, about 20 minutes then add the remainder of the wine and simmer until almost completely absorbed .

Step 5

Add the beef stock, thyme, bay leaf, pesto and brown sugar and return to a boil. Reduce to a low constant simmer, cover and cook for 1 hour or until beef is tender. Remove bay leaf and thyme sprigs.

Step 6

Add celery, carrots and potatoes, cover loosely and cook till tender, about 20-25 more minutes.

Step 7

While vegetables are cooking, melt butter in a sauté pan over medium-high heat. When butter is bubbly, add mushrooms and salt. Cook, stirring occasionally until mushrooms are golden brown, about 10-15 minutes. Add mushrooms and bacon to soup and stir. If soup is too thick add a bit more stock or water. Taste and add salt and freshly ground black pepper, if needed.Serve in bowls with warm crusty bread on the side.