Step 1

Preheat oven to 375 degrees F (190 degrees C). In 9 inch pie pan, toss shallots with oil to coat. Season with salt and pepper. Roast until shallots are deep brown and very tender, stirring occasionally, about 30 minutes.

Step 2

In a large saucepan, combine beef broth and port. Bring to a boil. Cook over high heat until the volume is reduced by half, about 30 minutes. Whisk in tomato paste. Set aside.

Step 3

Pat beef dry; sprinkle with thyme, salt and pepper. In a large roasting pan, set over medium heat on the stove top, saute bacon until golden. Using a slotted spoon, transfer bacon to paper towels. Add beef to pan; brown on all sides over medium high heat, about 7 minutes.

Step 4

Transfer pan to oven. Roast beef until meat thermometer inserted into center registers 125 degrees F (50 degrees C) for medium rare, about 25 minutes. Transfer beef to platter. Tent loosely with foil.

Step 5

Spoon fat off top of pan drippings in roasting pan. Place pan over high heat on stove top. Add broth mixture, and bring to boil; stir to scrape up any browned bits. Transfer to a medium saucepan, and bring to simmer. Mix 1 1/2 tablespoon butter and flour in small bowl to form smooth paste; whisk into broth mixture, and simmer until sauce thickens. Whisk in remaining butter. Stir in roasted shallots and reserved bacon. Season with salt and pepper.

Step 6

Cut beef into 1/2 inch thick slices. Spoon some sauce over, and garnish with watercress.