In a large oven safe casserole or frying pan, sauté the bacon until it's lightly brown. Remove to a large bowl with a slotted spoon. Preheat oven to 450º.
In the same casserole/pan, sauté the beef until it’s golden brown. (Brown the beef in batches so it browns and doesn't steam.) Remove it to the bowl with the bacon and set aside.
In the same casserole/pan, sauté the carrot and the onion.
Return the bacon and the beef to the casserole. Sprinkle it with salt and pepper, then add the flour and toss.
Place the casserole/dish uncovered in the middle position of the oven for 4 minutes. (This gives the meat a lovely crust.)
Remove the casserole/dish from the oven. Stir in the wine, stock, tomato paste, mashed garlic cloves, thyme, and bay leaf.
Bring it to simmering point on the stove. Now, if you were using a frying pan, put the stew in an oven safe dish.
Cover the casserole/dish (If your dish doesn't have a lid, use aluminum foil and stretch it to the edges of the dish in order to minimize the loss of juices) and place it low in the oven. Adjust the heat so that the liquid simmers very slowly, it has to go on for 3-4 hours. (I cooked mine at 325º for 3 hrs.)
While the stew is cooking, prepare onions and mushrooms. Prepare the mushrooms: Wash quarter and sauté them in 2 tablespoons butter. Keep on stirring until they’re nicely brown. Set aside. For the onions: Melt 1 tablespoon butter in a frying pan and sauté the peeled onions until golden brown. Add beef stock until they’re almost covered and simmer for 20-25 minutes, or until almost all the liquid disappears and they’re tender but keep their shape. Set aside.
When meat is tender, put the casserole on the stove and add the onions and mushrooms and heat for 2-3 minutes.
Serve it in the casserole with some sprigs of fresh parsley. Some goods sides are potatoes, noodles or rice.