Preheat oven to 250 degrees F.

Heat the olive oil in a large Dutch oven.

Add the bacon and cook over medium heat for 10 minutes, stirring occasionally, until the bacon is lightly browned.

Remove the bacon with a slotted spoon to a large paper towel-lined plate.

Dry the stew with paper towels and sprinkle with salt and pepper.

In batches in single layers, sear the beef in the hot oil for 3 to 5 minutes, turning to brown on all sides.

Remove the seared cubes to the plate with the bacon and continue searing until all the beef is browned. Set aside.

Add the carrots and onions to the pot and season with a pinch of kosher salt and black pepper.

Cook for 10 to 15 minutes, stirring occasionally until the onions are lightly browned.

Add the garlic and cook for 1 more minute.

Add the Cognac and let gently cook for a few minutes to help cook off some of the alcohol.

Put the beef and bacon back into the pot with the juices.

Add the bottle of wine plus enough beef stock to almost cover the meat.

Add the tomato paste and thyme.

Bring to a simmer, cover the pot with a tight-fitting lid and place it in the oven for about 1-1/4 hours or until the meat and vegetables are very tender when pierced with a fork.

Combine 2 tablespoons of butter and the flour with a fork and stir into the stew.

Add the frozen pearl onions.

Saute the mushrooms in 2 tablespoons of butter for 10 minutes until lightly browned and then add to the stew.

Bring the stew to a boil on top of the stove, then lower the heat and simmer for 15 minutes. Season to taste.

Serve plain, over buttered noodles, or spooned over grilled bread.