3 pounds boneless beef chuck, cut into 1½-inch pieces

2 teaspoons salt

1 teaspoon freshly ground black pepper

3 tablespoons olive oil

2 medium yellow onions, cut into 1-inch chunks

7 cloves garlic, peeled and smashed

2 tablespoons balsamic vinegar

1½ tablespoons tomato paste

¼ cup all-purpose flour

2 cups dry red wine

2 cups beef broth

2 cups water

1 bay leaf

½ teaspoon dried thyme

1½ teaspoons sugar

4 large carrots, peeled and cut into 1-inch chunks

1 pound small white boiling potatoes, halved

Fresh chopped parsley, for garnish (optional)