Heat the lard or fat in a large pot or Dutch oven over medium-low heat. Add the sliced onions and a pinch of salt. Cook gently for about 15 minutes, stirring occasionally, until they are very soft, golden, and beginning to caramelize. (This slow cooking builds the base of the sauce.)
Remove the pot from the heat. Stir in the paprika, minced garlic, and chopped bell pepper. Stir constantly for 1 minute to bloom the paprika’s flavor without burning it. Stir in the tomato paste (if using) and caraway seeds.
Add the raw meat cubes directly to the onion-paprika mixture. Stir well to coat. Add the bay leaf, salt and pepper to taste, and enough water or broth to come about halfway up the meat, but not fully cover it.
Return the pot to low heat and bring the liquid to a gentle simmer. Cover and cook slowly for 2 to 2.5 hours, or longer if needed, or until the meat is very tender (the longer it goes, the more tender the meat). Check occasionally, stirring and adding a splash of liquid only if the mixture becomes too dry.
Once the meat is fork-tender and the sauce has thickened into a rich consistency, remove the bay leaf. Adjust with additional salt and pepper to taste. If the sauce is too thin, simmer uncovered for a few minutes to reduce.
Serve your Pörkölt with nokedli (Hungarian dumplings), egg noodles, rice, or boiled potatoes. A side of tangy pickles offers a perfect balance to the rich stew.