Preheat your oven to about 350oF and place the rack in the lower position.
Make sure all the beef pieces are dry and cut into thick cubes. Season it with some salt and pepper and keep it aside.
Take a large dutch pan and keep it over medium heat. Add the bacon and cook it until it’s crispy, for about 5-6 minutes. Take it out and remove excess oil by keeping it on a paper towel.
After the bacon is done, grease the bacon and cook it over high heat. After the fat is cooking, add the beef and cook it until both of its sides are entirely brown. It will take you about 6-8 minutes.
Reduce the heat and add carrots, onions and pearl onions to the pan. Saute the onions until they are tender for about 10 minutes.
Add the remaining ingredients like thyme, bay leaf, garlic and tomato paste and saute this mix for about 1 minute. Now, add a little flour and stir it well. Pour in the beef stock and wine and cook them until the sauce becomes thicker.
Now, introduce the browned beef and bacon, cook it on low heat for about 5 minutes. Cover the pan and place it inside the oven. Cook it until the meat is soft and tender for about 1 ½ to 1 ¾ hour.
In another skillet add some olive oil and some butter and add the mushrooms to it keeping the heat on medium. Cook it until they are tender and season with some salt and cook it for about 2 minutes.
After you find that the beef is done, transfer the beef and the veggies to a bowl and cook it until the sauce comes to a boil. Check the consistency of the sauce and it should be thick enough to coat your spoon. Add more seasoning if required.
Garnish with some chopped parsley and serve it hot.