Peel the onion and chop it roughly. Cut the beef into 1-1.½-inch pieces.
Melt the lard or vegetable oil over medium-high heat in a pot with a thick bottom (I use a heavy iron cast Dutch oven). Fry onions until almost brown. Stir frequently to avoid burning. Finally, add the crushed caraway seeds and stir for another minute.
Add beef chunks, season with salt, and fry them from all sides until a golden brown crust is created. Expect the meat releases some juices when fried. Stir frequently, and scrape off the burnt residue on the bottom of the pot with a wooden spatula. If necessary, reduce the heat or add a spoon or two of water.
Turn the stove on medium heat, and add ground pepper, sweet paprika, and tomato paste. Fry for 1 minute while stirring. The base can’t get burnt, or else the goulash will taste bitter. Add 1-2 spoons of water to prevent burning.
Pour in water, so the meat is almost covered. Add bay leaves. Bring to a boil, reduce the heat to a minimum, cover with a lid and allow the beef to simmer for 2–2.5 hours or until soft.
Check the goulash from time to time. Add some water if the level of liquid in the pot falls. When the gulas contains too much water, cook it uncovered at the end. The liquid will be reduced, and the gulas will gain a richer flavor and a nice red color. Stir occasionally.
When the beef cubes are soft, add flour to thicken the stew. In the next step, I'll provide a helpful method for making the stew sauce smoother and more cohesive.
Thickening of goulash with flour (optional): Take off the pot's lid. Using a small sieve, carefully dust the surface of the stew with a tablespoon of flour. Do not stir. Cover with the lid and leave to cook for a further 15 minutes. Remove the lid and stir. The sauce will be just thick enough!
Remove bay leaves, add crushed garlic and dried marjoram, and stir. Season with salt to your liking. Cover with a lid and let it rest off heat for 10 minutes.