Beef Bourguignon a la Julia Child

Ingredients

• One 6-ounce chunk bacon
• 3 1/2 tablespoons olive oil
• 3 pounds Carman Ranch lean stew beef, or chuck roast, cut into 2-inch cubes
• 1 carrot, sliced
• 1 onion, sliced
• Salt and pepper
• 2 tablespoons flour
• 3 cups red wine, young and full-bodied (like Beaujolais, Cotes du Rhone or Burgundy)
• 2 1/2 to 3 1/2 cups beef (or chicken) stock
• 1 tablespoon tomato paste
• 2 cloves garlic, smashed
• 1/2 teaspoon thyme
• One crumbled bay leaf
• 18 to 24 small white onions, such as pearl
• 3 1/2 tablespoons butter
• Herb bouquet (4 parsley sprigs, one-half bay leaf, one-quarter teaspoon thyme, tied in cheesecloth)
• 1 pound fresh mushrooms, trimmed and quartered