In a Dutch oven over medium-high heat melt 1 TBSP of the butter. Season the beef with 1/2 tsp kosher salt and 1/8 tsp pepper. Add the beef and cook until all sides are browned, turning up the heat if necessary, about 10-15 minutes. Remove the beef from the pot and set aside.
Add another 1 TBSP of butter to the pot and return the heat to medium-high. Add the potatoes and carrots and cook until all sides are browned, about 10 minutes. Remove the vegetables from the pan, placing with the beef and set aside.
Preheat the oven to 325 degrees F.
Add another 1 TBSP of butter to the pot and keep over medium-high. Add the onions and garlic and cook until all sides are browned, about 5 minutes. Add in the water and scrape up all the browning from the bottom of the pan.
Add the beef, carrots, and potatoes back to the pan. Add 1 tsp kosher salt and 1/4 tsp pepper to the pot and stir everything together well. Cover with a tight fitting lid and cook in the oven until the beef is tender, about 45 minutes.
Stir in the 3 TBSP sour cream and a sprinkling of dill and place in the oven for 10 minutes more.
Serve with extra sour cream, dill, and chives for topping.
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