• Pre-heat oven to 350 degrees Fahrenheit and place a dutch oven over medium heat. Add cubed bacon and cook until fat has rendered, then remove to a plate and set aside.
• Dry the beef cubes with paper towels and season with salt and pepper and dust beef with all purpose flour so they are evenly and lightly coated. Bring heat up to medium high and sear beef in batches until deeply browned, about 2-3 minutes per side. Once done, remove to a plate and set aside.
• In the same pot, add the carrots and sliced onions and sauté until just softened, about 5 minutes. Add chopped garlic and sauté for another minute and then the tomato paste and sauté until for another minute.
• Now this is the fun part, but be careful. Turn off the heat (if you're using a gas stove) and pour in ¼ cup of Cognac. Light a match and carefully ignite to burn off the alcohol. Then once the flame subsides, use a wooden spoon or spatula and scrape all the meaty bits from the bottom.
• Turn the heat back on and return the beef and bacon to the pot. Then pour in wine and enough beef stock to just cover the meat. Add bay leaf and thyme, season with salt and pepper and bring up to a simmer.
• Once the stew is lightly simmering, place the lid on the pot and place in the middle rack of the oven. Lower the temperature to 325 degrees Fahrenheit and cook for 2 ½-3 hours, or until meat is fork tender and wine has reduced by at least a quarter.

Braised Mushrooms and Onions

• While the bourguignon is cooking, prepare the onions and mushrooms. In another pot over medium heat, drizzle with olive oil and add butter until melted. Add quartered mushrooms and sauté until mushrooms are deep brown and excess moisture has evaporated, about 10 minutes.
• Add pearl onions, ½ cup of red wine, thyme, bay leaf and season with salt and pepper. Continue sautéing on low-medium heat until wine has reduced and onions and mushrooms are tender.
• Once beef bourguignon is done, remove from the oven and let cool for a few minutes. Remove the bay leaf and herb bundle from both the stew and mushrooms, then stir in the mushroom and onion mixture. Garnish with chopped parsley and serve.