Preheat your oven to 450°. Simmer the bacon lardons in a pot of water for about 10 minutes. Remove with a slotted spoon and let them drain on some paper towels.
Over medium heat, saute the cooked bacon in 1 tablespoon of olive oil for about 3 minutes. You'll want it to be lightly brown. Remove with a slotted spoon and set aside.
Take the beef cubes and pat them dry using a paper towel. Then, working in batches, sear the meat on all sides over medium-high heat in a large Dutch oven. Then set it aside with the bacon.
In the same Dutch oven, saute the sliced onions and carrots over medium heat for about 3 minutes. Add a little more olive oil (or butter) if necessary. Return the bacon and the seared meat back to the pot and sprinkle in about 1/2 teaspoon of coarse salt and about 1/4 teaspoon of fresh ground black pepper. Sprinkle the flour in and toss. Place in the oven, uncovered, for 4 minutes. Remove the pot fro the oven, toss again, and place back in the oven for another 4 minutes. Then, remove from the oven and reduce the heat to 325°.
Pour the wine and the stock into the pot. You'll want enough so the meat is just barely covered. Then, stir in the tomato paste, crushed garlic, and thyme leaves. Bring this to a light simmer on the stove, then cover and place in the oven for 3 to 4 hours, until the meat is fork tender.
About an hour before you take the stew out of the oven, use a medium-size saute pan and heat 1.5 tablespoons of butter with 2 tablespoons of olive oil over medium heat. Add the pearl onions and cook until they are golden-brown, about 10 minutes. Then stir in 1/2 cup of beef broth, a pinch of salt and pepper, and the herb bouquet. Gently saute for another 30 to 40 minutes, until the small onions are soft.
Remove the pearl onions from the pan and set aside. Discard the herb bouquet and add the remaining butter and oil to the pan, over medium heat. Stir in the mushrooms and saute for about 5 minutes until they are soft. Remove the mushrooms and set aside with the peal onions.
When the meat and vegetables are ready to come out of the oven, place a colander over a large pan and strain the liquid from the meat. Set the meat aside and bring the pan of liquid to a low simmer for about 5 minutes. Place the beef and vegetables back into the Dutch oven, then pour the sauce over that mixture. Stir in the pearl onions and mushrooms, and bring to a low simmer for 5 or 10 minutes.
Serve at this time or allow it to cool and refrigerate for a day or two before serving. The flavor will get better and develop with a little time.
Notes
Top Tips for Making Beef Bourguignon
Be sure to sear the meat as directed. This step is important for a deep, rich-flavored beef burgundy.
You can use cheaper cuts of meat for this beef bourguignon as it will become tender as it cooks.
Use a good quality red wine in this recipe. One that you would enjoy by the glass.
Serve beef bourguignon over mashed potatoes or over egg noodles.