Gather all ingredients before starting recipe.
Pre heat oven to 300 °F Peel and chop 3 medium carrots and 1 large Spanish onion and quarter 1 lb button mushrooms if they are medium or large.
Heat a large deep sided skillet swith a tight fitting lid on medium high heat, add 1 tbsp olive oil and 8 oz double smoked bacon, cut into lardons, and cook until the bacon begins to brown, 4-5 minutes, then remove bacon from pan and set aside.
Dry 2 1/2 lb chuck beef cut into cubes with paper towel and add cubes to sauté pan in a single layer. Season beef with kosher salt and freshly ground black pepper and sear until each side is browed, 4-5 minutes per side.
Remove seared cubes of beef and set aside and add 1 large Spanish onion sliced and 3 medium carrots to pan, scraping up any brown bits and stirring occasionally; 10 to 15 minutes. Season with kosher salt and freshly ground black pepper.
When onions have started to turn golden, grate 2 cloves garlic and mix to combine, cooking for 1 more minute.
Return beef to sauté pan and deglaze with 1/2 cup cognac (optional) and reduce by half. Then add 1/2 bottle good red wine, then the beef consommé and 2 tbsp tomato paste, stir to combine. Note that the liquids should not cover the beef.
Cover with a tight fitting lid and place in a pre-heated 300℉ oven on a cookie sheet and bake for 1 1/2 to 2 hours. Check the mixture periodically, if the mixture looks a little dry, add a bit more wine or beef stock.
Add the 1 lb pearl onions to the mixture, leaving the pan in the oven.
Sautè 1 lb button mushrooms in a bit of butter over medium high heat, and when the mushrooms begin to brown, remove beef from oven and finish on the stove top over medium heat. Add the mushrooms to the beef and combine.
Mix 2 tbsp soft unsalted butter with 2 tbsp all-purpose flour and mix into the beef mixture, stirring well to combine. Cook for a few minutes until the sauce thickens.