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Beef Stew with Mushrooms and Red Wine

3 tb Vegetable oil
All purpose flour
2 1/2 lb Beef chuck; cut into 1.5 " cubes
1 Clove Garlic; minced
2 c Dry red wine
3/4 c Beef stock
1 Bay leaf
2 sl Bacon; chopped
1 c Onion; coarsely chopped
1 tb Tomato paste
2 tb Butter
1 lb Mushrooms; quartered
Fresh parsley; chopped

Preheat oven to 325. Heat oil in heavy large Dutch oven over high heat. Place flour in medium bowl; season with salt and pepper. Coat beef with flour, shaking off excess. Add half of beef to Dutch oven and brown well on all sides, about 5 minutes. Transfer beef to plate. Repeat with remaining beef, adding more oil to pan as necessary. Return beef and any accumulated juices to Dutch oven. Reduce heat to medium. Add garlic and cook 1 minute. Add wine and enough beef stock to cover meat. Add parsley sprigs and bay leaf. Cover and bake about 2 hours.

Heat heavy small skillet over high heat. Add bacon and saute until crisp. Transfer bacon to paper towels, using slotted spoon. Add onion to skillet and saute until translucent, about 5 minutes. Add tomato paste; stir 2 minutes. Add bacon and onion mixture to stew. Thin liquid with more stock if necessary. Cover and bake until meat is tender, about 30 minutes.

Melt butter in heavy large skillet oven high heat. Add mushrooms and saute until tender, about 10 minutes. Add mushrooms to stew. Season with salt and pepper.

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