Preheat the oven to 250 degrees F.

Heat the olive oil in a large Dutch oven. Add the bacon and cook over medium heat, stirring occasionally until the bacon is lightly browned, about 10 minutes. Remove the bacon with a slotted spoon to a plate and set aside.

Pat the beef cubes dry with paper towels. Sprinkle them with salt and pepper. Sear the beef in the hot oil in single layers until they turn brown on all sides, about 3-5 minutes. Remove the seared cubes to a plate and set aside. Do this in batches if necessary.

Do not clean off the fat from the pan. Add the carrots, onions, 1 tablespoon of salt and 2 teaspoons of pepper and cook, stirring occasionally, until the onions are lightly browned, about 10-15 minutes. Add the minced garlic and cook for another minute. Add the brandy and ignite from a distance with a torch to burn off the alcohol.

Put the beef and bacon back into the pot. Add all of the wine plus enough beef broth to almost cover the meat. Add the tomato paste and thyme and bring to a simmer. Put the lid on the Dutch oven and heat it in the oven until the meat and vegetables are very tender when pierced with a fork, about 1 hour 15 minutes.

Combine 2 tablespoons of butter and the flour with a fork and stir into the stew. Add the pearl onions.

Saute the mushrooms in 2 tablespoons of butter until lightly browned, about 10 minutes. Add the sauteed mushrooms to the stew. Bring the stew to a boil on top of the stove, then lower the heat and simmer for 15 minutes. Season to taste.

If you are serving with bread, toast the bread in the toaster or oven and rub each slice on one side with a cut clove of garlic. It is also tasty served over pasta.

Sprinkle with parsley for garnish.