Cook the bacon in a pot until fat comes out and the bacon turn light to medium brown. Remove the bacon and half of the fat. Put in a bowl. Set aside.
6 ounces bacon
Continue to heat the pot with bacon fat. Add the cubed beef and then cook for 5 to 8 minutes (or until the color turns medium brown) while stirring. Transfer to a bowl and include the juice. Set aside.
2 lbs. beef chuck or sirloin (see notes below)
Pour the bacon fat saved in step 1 into the pot. Heat the pot and then add the carrot; sauté for 3 minutes. Add the diced yellow onion. Continue to sauté until the onion gets soft.
2 medium carrots, 1 medium yellow onion
Put the cooked beef (with juice) and bacon back in the pot. Stir.
Pour the red wine and beef broth. Let boil.
3 cups red wine, 2 cups beef broth
Stir and add tomato paste and fresh thyme. Cover, set the heat to low, and then cook for 2 hours; add more beef broth if it starts to dry out.
2 tablespoons tomato paste, 1 ½ tablespoons fresh thyme
Meanwhile, melt the butter in a pan. Sauté the mushrooms in medium heat for 3 to 4 minutes; set aside.
3 tablespoons butter, ¾ lb. cremini mushroom
Put the pearl onions in the boiling pot of beef stew. Cook for 8 minutes.
12 to 18 pieces pearl onions
Add the sautéed mushrooms with butter. Stir.
Add salt and pepper to taste.
Salt and ground black pepper to taste
Sprinkle the flour on top. Quickly stir until the flour completely dilutes in the sauce.
2 tablespoons flour
Serve.