Beef Burgundy (Beef Bourguignon)

Ingredients

• 3 pounds beef chuck (cut into 2-inch cubes)
• 6 slices bacon (cooked and crumbled)
• 2 carrots (medium, chopped)
• 1 onion (large, chopped)
• 3 cloves garlic (chopped)
• 24 pearl onions (peeled)
• 1 1/2 pound mushrooms (washed and sliced, I used portobello)
• 3 cups Pinot Noir (or other red wine)
• 2 cups beef stock (or water)
• 2 1/2 tablespoons all-purpose flour
• 1 1/2 tablespoon tomato paste
• 6 tablespoons butter
• 1/3 cup parsley (fresh, chopped)
• 1 1/2 teaspoon dried thyme
• 1 teaspoon sugar
• 1 bay leaf
• 1 cup water
• salt (to taste)
• pepper (to taste)