01 -
Preheat oven to 350°F (175°C).
02 -
In a large Dutch oven over medium heat, cook the diced bacon until crispy. Remove and set aside, leaving the rendered fat in the pot.
03 -
Season the beef with salt and pepper. Brown the beef in batches in the bacon fat until well-seared. Remove and set aside.
04 -
Add the chopped onion and carrots to the pot, sautéing until softened, about 5 minutes. Stir in garlic and tomato paste, cooking for 1 minute.
05 -
Sprinkle the flour over the vegetables and cook for 1-2 minutes, stirring constantly.
06 -
Gradually stir in red wine, scraping the bottom to deglaze the pot. Add beef stock, bay leaf, thyme, and browned beef with bacon. Bring to a simmer.
07 -
Cover and transfer the pot to the oven. Cook for 2.5 hours, stirring halfway through.
08 -
In a skillet, heat butter and olive oil over medium heat. Sauté the mushrooms and pearl onions until golden brown, about 8 minutes.
09 -
Add the sautéed mushrooms and pearl onions to the stew during the last 30 minutes of cooking.
10 -
Adjust seasoning with salt and pepper. Remove thyme and bay leaf before serving.