Peel 1 pound potatoes and cut them into 1-inch (2.5 cm) cubes. Peel 1 pound sausages (if necessary), then cut them into 1.5 cm (2.5 cm) cubes, about the same size as the diced potatoes.
Roughly chop 3 medium onions. Peel and finely mince or press 2 cloves garlic.
Heat 2 Tablespoons pork lard in a pot over medium-high heat, add the onions, and fry them, stirring frequently, until they are slightly golden. Add 1 teaspoon ground caraway seeds and sausages to the pot. Sauté for 2 minutes.
Sprinkle the mixture with ¼ cup all-purpose flour and fry for 1 minute, stirring constantly. Add the cubed potatoes, garlic, and 1 Tablespoon sweet ground paprika, and sauté for 1 minute.
Pour in chicken broth until the potatoes and sausage are just submerged, but no more. Otherwise, the goulash will be thin and resemble a soup. Stir well, bring to a boil.
Reduce the heat to a minimum, cover with a lid, and cook, stirring occasionally, for 15-20 minutes or until the potatoes soften.
As the final step, season with ½ teaspoon ground pepper and salt to taste.