My grandmother came from the Budapest region of Hungary. I know there are many versions of this goulash but this is my favorite. I really love the homemade spatzel that you cook into the broth. Everytime I make it I think of my Grandma. This is a favorite in my household. It makes the house smell so good and cozy. The flavor is incredible and when you cook everything really slow the beef gets so soft and tender you can cut it with the spoon! This freezes really well too. It is a great fall/winter stew!
1Brown Beef in 8 qt dutch oven. In small sautee pan cook oinon until soft in cooking oil. Add Paprika to onion, this will become thick like a paste. Add this to the beef that is browned, cover with water and start to simmer beef on low heat.
2Clean, peel and cube potatoes for the stew. Rinse the carrots and cut them down to bite size pieces if desired. Add to the simmering stew beef, cover pan and continue to cook until veggies are almost done. When the potatoes are just about done add mushrooms with juice from can to the broth.
Note: If veggies are not covered by the water that was added to the pan with the beef, add enough to cover all ingredients.
Continue to simmer on low heat. Stir the pot occasionally.
3While you are simmeirng all the good stuff in the pot, Cut and clean the green peppers, cut into slices or chunks (what ever you prefer. Cut the tomatoes into quaters and add to the stew. Once the veggies are soft add the Tomato and Green peppers. Cook for an aditional 5 mim.
4Bring Stew to a boil when adding the spatzel, carefully drop the spatzel into the soup and cook until they are completely cooked through and floating. The flour/starch from the spatzel will thicken the stew somewhat. This is great served with fresh rye bread.