Pat the beef dry with paper towels. Mix the garlic powder, 1 tsp salt, and 1 tsp pepper in a small bowl then sprinkle it all over the beef.
Heat the oil in a dutch oven or large saute pan over medium-high heat. When the oil is hot sear the beef until well browned on all sides, about 5 minutes per side. Transfer the seared beef to a 5 to 6 quart slow cooker.
Add the onions to the hot pan keeping it over medium-high heat. Cook onions, stirring occasionally, until well browned, about 5 minutes. Carefully pour in the water and using a wooden spoon or spatula scrape the bottom of the pan to release any stuck on bits. Pour the contents of the pan into the slow cooker over top of the beef. Place the lid on the slow cooker and cook on LOW for 7 to 8 hours or until beef is tender.
Transfer the beef from the slow cooker to a large dish. Transfer any liquid in the slow cooker to a separate container and set aside. Shred the beef using two forks and set aside.
Melt the butter in a dutch oven over medium heat. Add the shredded beef to the dutch oven and sprinkle with the flour. Stir to coat all of the beef in the flour. Slowly stir in the milk and the reserved liquid from the slow cooker. Cook, stirring occasionally, until mixture is thickened, about 5 minutes. Season with salt & pepper to taste.
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