Beef Stew with Tomatoes and Mushrooms

My dad brought this recipe back from a trip to France several years ago, and it quickly became a family favorite. We modified the recipe according to our taste, but it makes an amazing stew, and it is full of surprising flavors that all come together beautifully.
The only way I know to make it is in a large amount, but you can easily divide the ingredients to make a smaller portion. However, as with most of my food, the larger the amount, the better the taste! And, of course, it always tastes better the next day!
Try it out and let me know how it turned out!!

2 lbs. cubed beef stew meat
2 medium yellow onions, sliced
3 cloves garlic, roughly chopped
4 cups beef stock (I use a low sodium one so that I can add as much salt I feel necessary)
2-3 cups water, or enough to cover the meat after adding the beef stock
3 bay leaves
1 sprig rosemary, leaves finely minced and the stem reserved
1 red or yellow bell pepper, sliced
2 cans straw mushrooms, drained (you will find these in the Asian section in any grocery store)
1 can diced tomatoes
1 tsp whole peppercorns
1/2 cup dry white wine
Minced fresh parsley, to garnish

1. Season the meat with salt and pepper and give it a light dust of flour to coat.
2. In a heavy stockpot, add some olive oil (2 tbls or so) and heat, when the oil is hot, add the meat and allow it to caramelize on each side.
3. Remove the meat once it has a crust on each side and add the onion and garlic. Saute until fragrant. Add the meat again and pour the beef stock and water to cover the meat by about 1/2 inch or so
4. Add the bay leaves, rosemary stem and minced leaves, peppercorns and bell pepper.
5. Put the pot into a 350 F oven for about 2 hours or until the meat is very tender.
6. Once the meat is cooked and tender, remove from the oven and place it on the stove on a low heat. Add the mushrooms and the wiine and allow it to slowly simmer. Stir in the diced tomatoes and season with salt and fresh ground pepper to taste.
7. If you would like to thicken it, use cornstarch mixed with cold water and simmer for 2-3 minutes until the consistency you want is reached.
Serve with pasta or mashed potatoes.

Enjoy!