My family LOVES this dish. I love it because it is a "dump and leave it" type. Put it all in a big pot, stir once in awhile and let it cook itself! You can tweek it to your tastes by adding small white onions or carrots to the mix. Enjoy!
Cut stew meat into bite size pieces. Pour flour into a freezer storage bag. Add salt and pepper to taste to the flour. Dump meat into bag and shake to coat. Use a good heavy stew pot. Chop onion and add to botton of pot. But bacon in pot and cook until crispy. Remove bacon and disgard.
Add stew beef to the bacon grease in the pot. Let beef cook (stiring occassionally) until browned on all sides.
Scrape bottom of pot with a wooden spoon to loosen up cooked onion and meat bits.
Once beef is nicely browned, add 2 cups water. Let cook about a half hour.
Add wine to pot and allow mixture to simmer for at least one hour to soften up the beef. You can add more wine and more water if it starts to reduce too much (You can use beef stock also but you don't want to over power the wine flavor)
20 mins. prior to serving add Mushrooms to pot and continue to simmer on low heat.
Serve with buttered egg noodles or white rice (my family like the noodles better) with a vegetable on the side. Enjoy!