Cut the lamb into approximately 2 cm cubes for even cooking. Finely chop the onion and garlic. Dice the tomatoes and bell peppers.
Melt the butter in a skillet over medium heat. Sauté the onion and garlic until translucent.
Add the lamb and sear over medium heat for 5-6 minutes, until browned on all sides.
Season with salt, pepper, cumin, and Hungarian sweet paprika. Stir well to ensure the spices are evenly distributed.
Add the diced tomatoes, bell peppers, and tomato paste, then pour in the water. Stir to combine, and simmer for 5 minutes to allow the flavors to meld.
Transfer the mixture to a clay pot (casserole dish) and cover with a lid or foil.
Place the clay pot in a preheated oven at 350°F (180°C) and bake for 60 minutes. Check periodically, adding a little water if necessary to prevent drying.
Once the lamb is tender and the flavors have melded, remove from the oven and let rest for 5 minutes before serving.
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