Preheat the oven to 250°.

Heat olive oil in a large Dutch oven. Add the bacon and cook over medium heat for 10 minutes, stirring occasionally, until the bacon is browned. Remove the bacon with a slotted spoon to a large plate, keeping fat heated.

Dry the beef cubes with paper towels and then sprinkle them with salt and pepper. In batches, sear the beef in the hot oil for 3 to 5 minutes, turning to brown on all sides. Remove the seared cubes to the plate with the bacon and continue searing until all the beef is browned. Set aside.

Toss the carrots, and yellow onion, 1 tablespoon of salt and 2 teaspoons of pepper in the oil and fat in the pan and cook for 10 to 15 minutes, stirring occasionally, until the onions are lightly browned. Add the garlic and cook for 1 more minute. Add the Cognac, and ignite. Put the meat and bacon back into the pot with the juices. Add the bottle of wine plus enough beef broth to almost cover the meat. Add the tomato paste and bouquet.

Bring to a simmer, cover the pot with a tight-fitting lid and place it in the OVEN for about 1:10, add frozen onions and bring back to simmer, simmer another 10-15 minutes or until the meat and vegetables are very tender when pierced with a fork.

Combine 2 tablespoons of butter and the flour with a fork and gently add to pot.

Saute mushrooms in 2 tablespoons of butter for 5 minutes, add sherry and saute another 5, then add to the pot.

Bring the pot to a boil on top of the stove, then lower the heat and simmer for 15 minutes. Season to taste.

To serve, toast the bread with tarragon butter. Serve over Roasted Red Potatoes