Simmer bacon in 4 cups water for 10 minutes. Drain and pat dry.
Preheat oven to 450°F. In a large dutch oven, saute the bacon in 1 tablespoon of oil for about 3 minutes, until it starts to lightly brown. Remove with a slotted spoon and set aside.
Dry the beef in paper towels. In batches, sear the beef on all sides in the Dutch oven. Set aside with the bacon.
In the same pot, add the sliced carrots and onions; saute in fat until browned, about 3 minutes over medium high heat. If theres any excess fat, drain.
Return the bacon and beef to the pot. Season with salt and pepper. Sprinkle with flour and toss once more. Place in the center of the oven for 4 minutes.
Remove pot from oven; toss beef and place back in the oven for 4 more minutes.
Remove the pot from the oven and reduce the heat to 325°F.
Add the wine and stock, tomato paste, garlic, thyme, and bay leaf (the liquid should barely cover the meat and vegetable). Bring to a boil on the stove, then cover and bake in the oven for 2-3 hours, or until meat is tender.
In the last hour of cooking, bring 1 1/2 tablespoons butter and 2 teaspoons oil to a medium high heat in a saute pan add the mushrooms and cook for about 5 minutes, shaking the pan to coat with the butter.
The original recipe calls for pearl onions to be browned in butter and added at the same time as the mushrooms. Feel free to add them if you have them.
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