Pound the round steak to about 1/4-inch thick then cut into squares, about 3-inches big.
Pat the beef dry with paper towels and season both sides of the beef generously with salt and pepper.
Heat the oil in a dutch oven over medium-high heat.
When oil is hot, working in batches so you dont overcrowd the pan, fry the beef on both sides until browned, about 1 minute per side. Transfer browned beef to a plate and set aside.
Add the onions, bell peppers, and celery to the pot and cook, scraping the bottom of the pot with a wooden spoon to release any stuck on bits, until vegetables are softened, about 5 minutes.
Add the butter to the pot, when the butter has melted stir in the flour and Cajun seasoning until well combined.
Slowly stir in the chicken stock, vinegar, diced tomatoes, thyme, and bay leaves.
Return the beef to the pot and bring to a boil.
Cover the pot, reduce heat to low and simmer, stirring occasionally, for about 2 hours or until beef is tender.
Remove lid and increase heat to medium-low. Cook, stirring occasionally, until thickened, about 1 more hour. Add salt and pepper to taste.
Serve over the cheese grits and garnish with the sliced green onion.
FOR THE GRITS:
In a medium saucepan combine the water, butter, salt, and pepper, bring to a boil over medium heat.
Stir in the grits, slowly, so they dont clump, and return to a boil.
Reduce heat to low and cook, stirring often, for about 15 minutes.
Add the milk, increase heat to medium-low and cook while stirring continuously, until thickened, about 15 more minutes.
Take off the heat and slowly stir in the shredded cheese until melted.
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