Season the beef with paprika, garlic powder, salt, and black pepper.
Heat the oil in a large pan. Add the beef and brown all over.
Throw in the diced onions, bay leaves, and chili peppers; cook until the onion are tender. About 3 minutes.
Stir in the tomatoes and add tomato paste. Leave to simmer for about 3 minutes, so that the tomatoes can release some of their juice.
Add stock and water and let the beef cook in the juice for about 15 minutes.
Add the potatoes and carrots. Cover and cook for about 20 minutes or until they become fork tender.
Meanwhile, combine the cornstarch and water and mix until smooth. Pour the slurry over the stew and stir. Let it simmer for about two more minutes until it thickens.