Step 1

Heat the oil in a large pot or Dutch oven to medium heat. (If using bacon, cook it down for 3 minutes to render the fat).

Step 2

Season the chopped stew beef with salt and pepper. Add to the pot and brown the meat on each side, about 5 minutes. Remove and set aside. (NOTE: Browning this way isn’t necessarily traditional, but it works for so many other recipes and I love the way it seals in the juices of the meat, prepping it for low and slow cooking).

Step 3

Add the onion and cook 5-6 minutes to soften.

Step 4

Reduce the heat (or pull the pot away from the burner) and stir in the paprika. Stir it off heat for 1 minute to let the paprika bloom. Removing it from the heat will avoid burning the paprika, which turns it bitter.

Step 5

Return the pot to medium heat and add the reserved beef, bell peppers, garlic, tomatoes, beef broth (or water), and bay leaves (and caraway seeds, if using). Bring to a boil, then reduce heat. Simmer for 1.5 hours. The liquid should reduce a bit.

Step 6

Add the potatoes and carrots. Add more water or beef stock for a soupier goulash (1-2 cups, as desired). Cover and simmer another 30 minutes, or until the vegetables are tender and the meat is done to your liking.

Step 7

Adjust for salt and pepper, and serve.