Using a skillet or dutch oven, place over medium heat and melt butter. Add onions and stir until soft and wilted, about 10 minutes. Stir in paprika and caraway seeds and cook for 2 more minutes.
Using large mixing bowl, toss beef chunks in flour. Stir with wooden spoon until evenly covered. Add beef chunks to onion mixture. Pour in ½ cup of broth, tomato paste and stir and cook for 2 minutes.
Add remaining broth to pot, stir and bring to boil. Then, reduce heat to low and cover. Cook for 90 minutes until chunks of beef are tender.
for the dumplings
Combine dry ingredients in mixing bowl. Add milk and butter and stir thoroughly.
Once the beef chunks are cooked to the tender stage, use a (heaping) teaspoon and drop the dumpling batter into the simmering stew. Cover the pot and cook for an additional 15 minutes.
Do not uncover the pot for 15 minutes, doing so will allow the steam to escape and the dumplings will boil instead of steam. Steaming is necessary for a light a fluffy dumpling. At the 15 minute mark, test the dumplings with a toothpick. If it comes out clean they are done and ready to eat.
The longer you allow the goulash to cook, the more tender the beef becomes. As an added bonus, the flavor of the stew develops thereby making it even more delicious.
Make this a crock-pot goulash by using your slow cooker and letting it cook all day long on medium or low heat, depending on your crock-pot.