Sautee the onion: Add the 2 tablespoons of lard, butter, or oil to a large pot/dutch oven and place it over medium-high heat. Once it is hot toss in the diced onion and sautee it for 5 minutes or until the onion pieces become translucent.

Brown up the beef: Add the chunks of beef to the same pot and stir to combine it with the onions. Continue to sautee these two ingredients for another 5 to 7 minutes or until the meat has become slightly browned on the outside.

Add the tomato, bell pepper, and garlic to your pot and continue to sautee everything for another couple of minutes or until the tomato begins to break down.

Add the spices: Turn the heat down to medium-low and add the paprika, salt, black pepper, caraway seeds, and bay leaf to the pot. Stir to combine everything together and continue to sautee everything for another two minutes. Just make sure to constantly stir during this step as paprika can easily burn and become bitter.

Pour 6 cups of water or stock into the pot and stir everything together. Let the liquid come to a boil, then reduce the heat and let the liquid stay at a simmer. Cover the pot with a lid and let everything simmer for at least 1 hour and 30 minutes.

Add the vegetables: After 1 hour and 30 minutes take the lid off the pot. Then toss in the chunks of carrot, parsnip, and potatoes. Stir to combine everything and raise the heat so that the liquid comes to a boil. Then reduce the heat so that the liquid is at a simmer, cover the pot again, and let everything simmer for another hour or until the beef and vegetables are fork tender.

Once everything is tender taste the goulash and add additional salt and pepper to your liking.

Serve the goulash in individual bowls and enjoy!