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1 Heat the vegetable oil or drippings in a large dutch oven or casserole dish.
2 Add the onions and sautee over medium-high heat for 5-7 minutes until golden brown.
3 Add the vinegar and heat for an additional 2-3 minutes to burn off the sharp flavor.
4 Stir in tomato paste, beef stock, garlic, paprika, brown sugar and continue to cook and heat to a simmer.
5 Set the pot aside to simmer over medium heat while browning the beef cubes separately in an another pan.
6 Preheat the oven to 325 degrees.
7 In a frying pan cook the bacon until softened and pale golden in color.
8 Pat the beef cubes dry and add in batches to the bacon mixture.
9 Add the salt, chili powder, and black pepper to the beef cubes.
10 Brown the beef on all sides
11 When each batch is browned transfer it to the the dutch oven or casserole dish.
12 Add a dash of chili powder, cover and bake for 2 hours or until the meat is very tender.
13 Remove the dish from the oven and skim off any extra fat from the surface.
14 Whisk together the water and flour until well blended and gently stir into the goulash.
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