Prepare and Season the Beef: Pat the beef cubes dry with a paper towel to remove excess moisture, which helps them brown better. Toss the beef with half of the salt and all the black pepper, coating the pieces evenly. Set aside while you prepare the vegetables.
Build a Flavorful Base: Heat olive oil and butter together in a large, heavy-bottomed Dutch oven over medium-high heat. Once hot, add the diced onions and sauté for about 6–7 minutes, stirring frequently, until they become soft and start to turn light golden around the edges. This creates the sweet, rich base flavor for the stew.
Sear the Beef: Increase the heat slightly, then add the seasoned beef cubes to the pot. Stir for 2–3 minutes, just until the exterior turns from red to brown. You don’t need a deep crust; this step simply enhances the stew’s flavor.
Add Vegetables and Aromatics: Mix in the minced garlic, chopped bell peppers, and tomato wedges. Cook for about 3–4 minutes, stirring occasionally, until the tomatoes begin to break down, releasing their natural juices to enrich the broth.
Season with Spices: Sprinkle in the sweet paprika and optional caraway seeds, then drop in the bay leaf. Stir well for about 30 seconds, allowing the spices to bloom and release their aroma before adding any liquid.
Simmer in the Oven: Pour in the beef stock and stir to combine. Bring the mixture to a gentle simmer, then cover the Dutch oven with a tight-fitting lid. Transfer it to a preheated oven at 350°F (180°C), or 320°F (160°C fan), and cook for 90 minutes. This slow, moist heat tenderizes the beef beautifully.
Add Root Vegetables: After the first stage of cooking, check the beef—it should be soft but not yet falling apart. Stir in the diced carrots and potatoes, making sure they’re submerged in the broth. Cover and return to the oven for another 30–40 minutes, until the beef is fork-tender and the vegetables are cooked through.
Finish and Serve: Remove the bay leaf and taste for seasoning, adding more salt or pepper if needed. Ladle the goulash into bowls, sprinkle with fresh parsley, and serve hot. Pair with crusty bread for dunking, or serve over buttered noodles for a heartier meal.