Preheat the oven to 170°C/Fan 150°C/Gas 3½. Trim any hard fat off the beef and cut the meat into rough 4cm chunks. Season well with salt and freshly ground black pepper.
Heat the oil in a large heatproof casserole dish/pan Add the steak and fry over a high heat until nicely browned all over, turning regularly. Add the onions into the pan and cook with the beef for 5 minutes until softened. Add the crushed garlic and cook for a further minute, stirring regularly.
Sprinkle both paprikas over the meat and crumble the beef stock cube on top. Add the water, tomatoes, tomato purée and bay leaves. Season with salt and pepper, stir well and bring to a simmer. Cover with a tightly fitting lid and transfer the dish to the oven. Cook for 1 & 1/2 hours.
While the beef is cooking, remove the core and seeds from each pepper Cut each pepper into chunks.When the beef has cooked for 1 &1/2 hours, carefully remove the dish from the oven. Stir in the peppers, put the lid back on and put the goulash back in the oven for a further hour or until the beef is tender.
Serve with small portions of rice.
