Trim any tough bits from the beef, such as ligaments or excess fat. Cut the cleaned beef into pieces about 2 inches (5 cm) in size.
Peel the onion and chop it finely.
In a heavy-bottomed saucepan, melt the lard over medium heat. Add the chopped onion and fry until golden brown, stirring frequently. The onions must not be too brown or burn; otherwise, the goulash will taste bitter.
Add paprika and stir. Paprika must not fry; otherwise, it would burn.
Immediately add the chopped meat, goulash seasoning, crushed garlic, and about a teaspoon of salt. Stir until the meat cubes release their liquid. Let the liquid evaporate.
Add water so that the meat is about half submerged.
Cover the pot with a lid, but not entirely, leaving a small space where steam can escape.
Lower the heat so that the meat simmers slowly. Check regularly and always top up with water so that the meat is half covered with liquid. The meat must be stewed in its own juices, not boiled in water. In this way, the goulash acquires its brown, rich color, and plump consistency so appreciated in Viennese Inns and restaurants.
Slowly braise the meat until fully tender. Once the meat is tender to the core (it takes up to 3 hours), add as much water until the liquid covers it. Then let the whole thing simmer for another 10 minutes or so until you get a nice creamy juice.