Beef Bourguignon

Ingredients

• 3 tablespoons olive oil
• 2 strips bacon, cut into l-inch pieces
• 2 pounds sirloin steak, cut into 1" cubes
• Salt and freshly ground black pepper to taste
• 12 small white onions, peeled, whole (cut in half, if desired)
• 1 clove garlic, crushed
• 2 tablespoons all-purpose flour
• 2 cups dry red wine
• 2 cups water
• 2 tablespoons tomato paste
• 2 teaspoons fresh thyme
• 1 tablespoon finely chopped parsley
• 3 bay leaves
• 7 peppercorns
• 1 pound mushrooms