Pat the beef dry & season with the salt & pepper. In a heavy soup pot, heat 1 tablespoon of the olive oil over medium-high heat, until hot. Brown the meat in 3 batches, turning with tongs for about 5 minutes per batch; add one more tablespoon of oil per batch (to sear the meat properly, do not crowd the pot & let the meat develop a nice brown crust before turning with tongs). Transfer the meat to a large plate & set aside.
Add the onions & garlic to the pot, stirring with a wooden spoon & scraping the brown bits from bottom of the pot, until the onions begin turning translucent.
Add the tomato paste & cook for one more minute. Add the seared beef back in with its juices. Stir in the flour with a wooden spoon until it has dissolved.
Add the wine, beef broth, water, bay leaves, thyme & sugar. Bring to a boil. Cover the pot with a lid & turn heat to low. Allow to simmer for 1 ½ hours, stirring every 10 minutes or so, to ensure nothing gets stuck on the bottom of the pot (Note: you can cook the meat for longer at this point if you would like it more tender. The longer you cook it, the more tender it will become)
Add the carrots and potatoes. Continue to simmer on a low heat with the lid on for another 20-30 minutes or until the vegetables are cooked. Remove the bay leaves and discard. Add salt & pepper to taste.
Serve the stew warm with a garnish of fresh parsley.
