Cut beef into bite-sized pieces and marinate overnight in red wine with carrots, shallots, onion, thyme and bay leaves. Drain well and dry lightly with a clean cloth.
Dice bacon and brown in a cocotte with small onions and carrots. When these are lightly coloured, remove them together with the bacon, and sauté drained beef in remaining fat until brown. Sprinkle with flour, and add red wine from marinade and a glass of water.
Return diced bacon, onions and carrots to the pan, and add garlic and a bouquet garni’, season to taste with salt and freshly ground black pepper. Simmer gently until meat is tender and the sauce reduced to half the original quantity - about 2¾ to 3 hours. Brown mushrooms in butter and add to meat about 10 minutes before end of cooking.