Heat oil in a heavy-bottomed pot over medium-high heat. Add beef cubes and brown all sides, working in batches if necessary. Remove beef and set aside.
In the same pot, reduce heat to medium. Add onions and cook until translucent. Stir in garlic and paprika quickly to bloom the spices without burning.
Add diced bell peppers and crushed tomatoes or tomato paste. Cook for a few minutes until fragrant.
Return beef to the pot. Pour in beef broth and add optional caraway seeds and bay leaves.
Bring to a gentle boil, then reduce heat to low. Cover and simmer for 2 to 3 hours, stirring occasionally, until beef is tender and sauce thickens.
Remove bay leaves. Season with salt and pepper to taste. Add extra broth if too thick.
Let rest off heat for 15 minutes before serving.
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Notes
Use fresh Hungarian paprika for best flavor. Feel free to add vegetables like carrots or mushrooms to customize.