Finely chop the onions and crush the garlic. Dice the bell pepper and tomatoes.
In a large pot, heat the oil or lard over medium heat. Sauté the onions until golden brown.
Stir in the Hungarian sweet paprika quickly, then add a splash of water to prevent it from burning.
Add the mutton and sear for a few minutes until lightly browned. Season with salt, pepper, ground caraway seeds, and bay leaves.
Add the diced tomatoes and bell pepper. Pour in enough water to partially cover the meat. Stir well and bring to a boil.
Reduce the heat to low, cover the pot, and simmer for 1.5-2 hours, or until the mutton is completely tender.
Serve hot with fresh bread or dumplings (nokedli), and offer a side of pickled cucumbers (kovászos uborka).
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