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Heat the oil in a dutch oven over medium-high heat.
Pat the lamb shoulder dry with paper towels then generously season with salt and pepper. Sear the lamb in the hot oil until well browned on all sides, 2 to 3 minutes per side. Transfer seared lamb to a plate and set aside.
Add the onions to the pot and cook until softened, about 3 minutes.
Stir in the flour until thoroughly combined, about 1 minute.
Pour in the beef broth and stir to combine. Add the lamb and bring to a boil.
Reduce heat to medium-low. Cover and simmer until meat is tender and falls off the bone, about 2 hours.
Transfer the lamb to a plate and discard bone and extra fat. Break up the meat into bite size pieces and return to the pot along with the carrots and potatoes.
Increase heat to medium and cook uncovered, stirring occasionally, until carrots and potatoes are tender and stew has thickened, about 25 minutes.
Take off the heat and stir in the fresh parsley. Season with salt and pepper to taste.
Ladle into bowls and serve.