Combine beef, paprika and flour in a bowl. Season with 1/2 teaspoon salt and 1/2 teaspoon pepper. Heat oil in a soup pot; add beef and brown on high heat, stirring. When brown, add onions. Cook and stir, allowing onions to soften; add bell peppers, potato and garlic, turning heat down to medium.
When onions start to caramelize, add 1/2 cup water. Continue cooking until water is gone; add 1/2 cup more water and cook again until water is gone. Add remaining 7 cups water and let simmer on medium-low heat for 30 45 minutes, until beef is tender. Season with salt, pepper, lemon zest, caraway seeds and parsley. Serve with German bread.