Viennese Goulash: What Did You Bake Today?

We have some friends whose parents emigrated from Austria. This is their family recipe and they graciously shared it with us. This was cooked in an enamel covered cast iron Dutch oven, but any oven safe Dutch oven will work.
Viennese Goulash:
Onions (the same amount as meat – volume for volume- this makes the sauce)
2-4 Tbls Hungarian sweet paprika (sufficient amount to give a rich color to the cooked onions)
Lean Beef (plan on 1/2 pound per person), cut into cubes
1/4 cup butter
2-3 bay leaves
noodles (homemade is best, but use what is easiest)
salt & pepper to taste
In the Dutch oven, saute the onions in the butter until clear, NOT brown. Add the paprika. Watch carefully after adding the paprika as it will burn very easily. Add the beef and brown on all sides. (Browning the meat can be done in a separate pan if you are worried about burning the onion). Add 1 cup of water and the bay leaves. Cover and put into the oven at 250 degrees for 6 hours. Check it every two hours to make sure that it doesn’t stick and still has liquid. Add more water if necessary.
The onions will completely dissolve into an amazing sauce. Serve over noodles, potatoes or rice. When we make this, there are no leftovers and we have to restrain ourselves from licking our plates.
What Did You Bake Today?
A Year on the Grill

This looks very hearty and wonderful!

In place of the water, I would do a 50/50 mix of dry red wine and water.

Must be a sign of my age that I am starting to have left over wine at the end of a night… I now consider it a leftover ingredient.