Cut the beef into medium-sized cubes. Season with salt and pepper, then set aside.
Peel the pearl onions. Finely chop the onion and garlic.
In a large pot or Dutch oven, heat the olive oil over medium-high heat. Brown the beef on all sides until golden brown. Remove the beef and set aside.
In the same pot, sauté the pearl onions until lightly caramelized. Add the chopped onion and garlic, and cook until softened.
Add the tomato paste and cook for an additional 2 minutes, allowing the flavors to concentrate.
Return the beef to the pot, and deglaze with red wine. Stir in the cinnamon stick, bay leaves, cloves, and nutmeg.
Pour in water or beef broth to cover the ingredients. Bring to a simmer, then reduce heat to low, cover, and cook for 1.5-2 hours, or until the beef is tender and easily shredded with a fork.
Taste and adjust seasoning with additional salt and pepper, if needed. Serve hot with crusty bread or steamed rice.
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