Beef Stew In Red Wine Sauce

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2 pounds beef from the flatiron part of the shoulder

1 tablespoon butter

2 tablespoons olive oil



1 cup finely chopped onion

1 tablespoon finely chopped garlic

1 tablespoon flour

1 bottle of red wine

2 bay leaves

1 sprig fresh thyme

15 cipollini or pearl onions

15 cremini mushrooms

15 baby carrots

5-ounce piece of pancetta

1/4 cup water

Dash of sugar

Chopped fresh parsley

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