Classic Beef Bourguignon

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4 strips smoked bacon, chopped

1 pound stewing steak, in large dice

4 tablespoons flour

4 tablespoons vegetable oil

12 baby onions or shallots, peeled

1 carrot, peeled and chopped

8 ounces mushrooms, quartered

14 ounces water, boiling

1 cube beef stock

1/2 pint red wine

1 tablespoon tomato paste

2 cloves garlic, chopped

1 teaspoon dried thyme

2 bay leaves

salt and freshly ground black pepper, to taste

1 tablespoon cornstarch, optional

mashed potatoes and green beans or braised cabbage, to serve

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