Cut the beef into medium-sized cubes. Season with salt and pepper, then set aside.
Peel and chop the vegetables (potatoes, carrots, onions) into medium-sized pieces. Mince the garlic.
In a large pot or Dutch oven, heat the olive oil over medium-high heat. Sear the beef until browned on all sides. Remove from the pot and set aside.
In the same pot, sauté the onions until translucent. Add the garlic and cook for another 1-2 minutes, until fragrant.
Add the seared beef, diced tomatoes, red wine, bay leaves, and Hungarian sweet paprika to the pot. Stir well to combine.
Pour in the water or broth, bring to a boil. Reduce the heat to low, cover, and simmer for 1.5-2 hours, or until the beef is tender.
When the beef is almost tender, add the potatoes and carrots. Cook for another 30 minutes, or until the vegetables are tender.
Taste and adjust seasoning with salt and pepper as needed. Serve hot with fresh bread or steamed rice.
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