Beef Burgundy

1 large onion, thinly sliced
3 Tablespoons unsalted butter, divided
1½ pounds round steak, trimmed of fat and cubed
¼ cup all purpose flour
1 teaspoon salt
¼ t easpoon freshly ground pepper
1 cup beef broth
1 cup dry red wine
¼ teaspoon thyme
1 bay leaf
12 pearl onions, peeled
8 ounces fresh mushrooms, sliced
2 Tablespoons Cognac

Preheat oven to 350º F.

Melt 2 Tablespoons butter in a large skillet. Add beef cubes and sliced onions. Cook until the beef is browned. Add flour, salt and pepper. Mix well. Add wine and beef broth; bring to a boil, stirring constantly until thickened and smooth. Add thyme and bay leaf. Transfer to a covered, oven proof dish. Bake at 350º F for one hour. Add pearl onions and continue cooking 45 minutes longer.

In a small frying pan, melt remaining 1 Tablespoon butter. Add sliced mushrooms and sauté 3 to 4 minutes, or until tender. Add Cognac and ignite. Stir until flame dies down. Add to beef mixture and continue cooking in oven for 15 minutes longer. Remove from oven; discard bay leaf. If necessary, thicken gravy with a little Bisto mixed with water, or a little cornstarch mixed with water. Serve over hot buttered noodles or Yorkshire Pudding. If serving a wine, choose a Beaujolais or red zinfandel. Yield: 4 servings.