Step 1: Prepare the Beef

1. Pat the beef cubes dry with paper towels and season with salt and pepper.
2. Heat the vegetable oil or lard in a large Dutch oven over medium-high heat.

Step 2: Brown the Beef

1. Sear the beef cubes in batches until browned on all sides, about 2-3 minutes per side. Remove the beef and set it aside.

Step 3: Sauté the Onions and Garlic

1. Lower the heat to medium and add the onions to the pot. Sauté for 8-10 minutes until golden and softened.
2. Add the garlic and cook for an additional 1-2 minutes until fragrant.

Step 4: Add Paprika and Tomato Paste

1. Stir in the sweet Hungarian paprika, smoked paprika (if using), and caraway seeds. Cook for 1 minute to toast the spices.
2. Add the tomato paste and mix well, cooking for another minute to develop its flavor.

Step 5: Build the Broth

1. Pour in the beef broth, scraping up any browned bits from the bottom of the pot.
2. Return the beef to the pot, along with the bay leaf. Bring the mixture to a simmer.

Step 6: Simmer the Goulash

1. Cover the pot and reduce the heat to low. Simmer for 1 1/2 hours, or until the beef is tender. Stir occasionally.

Step 7: Add Vegetables

1. Add the potatoes, carrots, and bell peppers to the pot. Cook for an additional 30 minutes, or until the vegetables are tender.
2. Adjust seasoning with salt and pepper to taste.

Step 8: Serve and Garnish

1. Ladle the goulash into bowls and garnish with fresh parsley and a dollop of sour cream, if desired. Serve hot with bread or noodles.