1. Preheat oven to 325°F with rack in middle.
2. Pat beef dry and season salt and pepper. Dredge the beef in the flour with a large bowl.
3. In a large Dutch oven or heavy pot, heat 1 tablespoon of oil over medium-high heat until hot and shimmering. Brown meat in 3 batches, turning with tongs, about 5-8 minutes per batch, adding one tablespoon more oil for each batch.
4. Transfer meat to a large plate and set aside.
5. Add onions, garlic and balsamic vinegar; cook, stirring with a wooden spoon to scrape brown bits from bottom of pan, about 5 minutes.
6. Add tomato paste and cook a few minutes more. Add beef with juices back to pan and sprinkle with flour; stir with wooden spoon until flour is dissolved, 1-2 minutes.
7. Add beef broth, water, bay leaf, thyme, and sugar; stir with wooden spoon to loosen any brown bits from bottom of pan and bring to a boil.
8. Cover pot with lid, transfer to preheated oven and braise for 2 hours.
9. Remove pot from oven and add carrots and potatoes. Cover and place back in oven for 50-60 minutes more, or until vegetables are cooked and meat is very tender.
10. Taste and adjust seasoning (if necessary) and garnish with fresh parsley.

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Suggested Pairings:  Match this stew with a robust style brown ale, porter or stout. We feel cozy just thinking about it.

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