Preheat oven to 325 degrees.

Heat the oil in a medium cast iron casserole. Add one third of the meat at a time, season with salt and brown well on all sides over moderate heat, about 6 minutes, transfer to plate. Repeat with remaining meat.

Add carrots and onions to the casserole and cook, stirring, until lightly browned, about 10 minutes.

Sprinkle the flour over the vegetables and cook until browns lightly, about 3 minutes.

Gradually stir in the wine and water, scraping up the browned pan juices. Return the meat to the casserole.

Add tomato paste, bay leaves, thyme and mushrooms. Bring to a boil.

Cover the casserole tightly and bake for 3 hours, or until the cubes of beef are very tender.

Discard the bay leaves and the thyme sprigs and skim the fat from the sauce.

Season with salt and pepper and serve with egg noodles or boiled potatoes.