Preheat Oven
Preheat oven to 325°F. Set a rack in the lower middle position.
Prep the Beef
Pat the beef dry and season with salt and pepper. In a large Dutch oven or heavy soup pot, heat 1 tbsp olive oil over medium-high heat until hot and shimmering.
Brown the Meat
Brown the meat in 3 batches, turning with tongs, about 5 minutes per batch. Add 1 tbsp more oil for each batch. Don't crowd the pan - let a brown crust form before turning. Transfer browned meat to a large plate.
Sauté Aromatics
Add onions, garlic, and balsamic vinegar to the pot. Stir and scrape up the brown bits from the bottom for about 5 minutes.
Add Tomato Paste & Flour
Add tomato paste and cook 1 minute more. Return beef and juices to the pot. Sprinkle with flour and stir until flour dissolves (1-2 minutes).
Add Liquids
Add wine, beef broth, water, bay leaf, thyme, and sugar. Stir well, scraping up any remaining brown bits.
Braise
Bring to a boil. Cover, transfer to the preheated oven, and braise for 2 hours.
Add Vegetables
Remove from oven, add carrots and potatoes. Cover and return to oven for 1 hour more, or until vegetables are cooked and meat is tender.
Finish & Serve
Remove bay leaf. Taste and adjust seasoning as needed. Serve warm, garnished with chopped parsley if desired.
Make Ahead Tip: This stew improves in flavor when made a day in advance. Let cool, refrigerate overnight, and reheat covered over medium heat before serving.
If you don't have an oven-safe Dutch oven, cook on the stovetop over the lowest heat setting. Timing remains the same.
Pairs well with:
Crusty bread, a glass of red wine, and a crackling fireplace.