Step 1: Brown the Beef

1. Heat 2 tablespoons of olive oil in a large Dutch oven or heavy-bottomed pot over medium-high heat.

2. Add the beef cubes in a single layer and sear them for 2–3 minutes per side until browned. Do this in batches if necessary to avoid overcrowding.

3. Once browned, remove the beef from the pot and set aside.

Step 2: Sauté the Onions and Garlic

1. In the same pot, reduce the heat to medium and add the chopped onions. Cook for 5 minutes, stirring occasionally, until softened.

2. Add the minced garlic and cook for another 30 seconds, until fragrant.

Step 3: Add the Paprika and Spices

1. Stir in the Hungarian sweet paprika, smoked paprika (if using), salt, black pepper, and caraway seeds.

2. Let the spices cook for 30 seconds to release their aroma. Be careful not to burn the paprika, as it can turn bitter.

Step 4: Build the Flavor Base

1. Add the tomato paste and stir well to coat the onions and spices.

2. Pour in the diced tomatoes, sliced carrots, and diced bell peppers. Stir everything together.

Step 5: Simmer the Goulash

1. Return the seared beef to the pot.

2. Pour in 4 cups of beef broth, ensuring the meat is fully submerged.

3. Add the bay leaves, then bring the mixture to a gentle boil.

4. Reduce the heat to low, cover, and let the goulash simmer for 1½ hours, stirring occasionally.

Step 6: Add the Potatoes (Optional)

1. If you prefer a thicker goulash, add the diced potatoes after the first 1½ hours of simmering.

2. Continue cooking for another 30 minutes, until the potatoes are tender and the beef is melt-in-your-mouth soft.

Step 7: Adjust Seasoning and Serve

1. Remove the bay leaves and discard them.

2. Taste the goulash and adjust the seasoning with more salt or pepper if needed.

3. Serve hot, garnished with fresh parsley and a dollop of sour cream, if desired.