This authentic Hungarian beef goulash is the ultimate comfort food with melt-in-your-mouth beef chunks in a rich, paprika-infused sauce. Unlike American versions, true Hungarian goulash is a hearty soup-like stew, not a pasta dish. The key to this recipe is using high-quality Hungarian paprika and allowing the beef to simmer slowly until tender. Perfect for cold winter evenings, this dish develops even better flavor when made a day ahead.
Pat the beef cubes dry with paper towels and season generously with salt and pepper.
Heat 1 tablespoon of oil or lard in a large Dutch oven or heavy-bottomed pot over medium-high heat.
Working in batches to avoid overcrowding, brown the beef on all sides, about 3-4 minutes per batch.
Transfer browned beef to a plate and set aside.
Make the Base
In the same pot, add the remaining oil and reduce heat to medium.
Add the diced onions with a pinch of salt and cook until translucent and starting to brown, about 8-10 minutes, stirring occasionally.
Add the minced garlic and cook for another minute until fragrant.
Remove the pot from heat and stir in the sweet and hot paprika, along with the caraway seeds. This prevents the paprika from burning, which would make it bitter.
Simmer the Stew
Return the pot to medium heat and add the bay leaves, bell peppers, and carrots. Cook for 5 minutes, stirring occasionally.
Add the diced tomatoes and tomato paste, stirring to combine.
Return the browned beef to the pot along with any accumulated juices.
Pour in the beef stock and bring to a gentle boil, then reduce heat to low.
Cover and simmer for 1 hour, stirring occasionally.
Add the potatoes and continue to simmer for another 45 minutes to 1 hour, until both the beef and potatoes are fork-tender.
Stir in the red wine vinegar and adjust seasoning with salt and pepper to taste.
Finish and Serve
Let the goulash stand for 10-15 minutes before serving, which allows the flavors to meld.
Serve hot in bowls, topped with a dollop of sour cream and sprinkled with fresh parsley.
Accompany with crusty bread or traditional Hungarian spätzle for dipping into the rich sauce.