Preheat your oven to 325°F and position a rack in the lower middle section.

Pat the beef dry with paper towels and season all over with salt and pepper. In a large Dutch oven or heavy-bottomed soup pot, heat 1 tablespoon of olive oil over medium-high heat until it’s hot and shimmering. Working in three batches to avoid overcrowding, brown the beef on all sides, turning with tongs and letting it sear undisturbed for about 5 minutes per batch. Add an additional tablespoon of oil for each new batch. Proper browning is key—allow the beef to form a deep brown crust before flipping. Once browned, transfer all the beef to a large plate and set aside.

To the same pot, add the chopped onions, smashed garlic, and balsamic vinegar. Cook for about 5 minutes, stirring frequently and scraping up any browned bits stuck to the bottom of the pot with a wooden spoon. Stir in the tomato paste and cook for an additional minute. Return the browned beef and any accumulated juices to the pot. Sprinkle the flour over the meat and stir well, allowing the flour to dissolve and coat the ingredients evenly—this should take about 1 to 2 minutes.

Next, pour in the red wine, beef broth, and water. Add the bay leaf, dried thyme, and sugar. Stir thoroughly to combine, again scraping up any remaining browned bits from the bottom. Bring the mixture to a boil, then cover with a lid and transfer the pot to the preheated oven. Let the stew braise for 2 hours.

After 2 hours, remove the pot from the oven and add the carrots and potatoes. Re-cover and return to the oven for about 1 more hour, or until the vegetables are tender, the broth has thickened, and the beef is fall-apart tender. Discard the bay leaf. Taste the stew and adjust seasoning with more salt and pepper, if needed. Serve hot, garnished with fresh parsley if desired, or allow the stew to cool to room temperature and refrigerate for later. The flavors deepen beautifully overnight, making this an excellent make-ahead meal. Reheat gently on the stovetop over medium heat before serving.

Note: If you don’t have an oven-safe Dutch oven or heavy pot with a lid, you can make this stew entirely on the stovetop. The cooking times remain the same—just be sure to simmer it gently over the lowest heat setting.

Make-Ahead and Freezer Instructions:

Prepare the stew as directed, then let it cool to room temperature before refrigerating. It can be stored in the refrigerator for up to 3 days. Reheat slowly on the stovetop over medium-low heat until warmed through. For freezing, allow the stew to cool completely, then transfer it to an airtight container. It can be frozen for up to 3 months. To serve, thaw it overnight in the refrigerator and reheat on the stovetop as needed.