Hungarian goulash (the stew, not the soup)

I've been served dishes titled "Hungarian Goulash" several times during my stay in the States. There seems to be a major misunderstanding I must rectify: while there are many accepted ways of preparing goulash in Hungary, none of them involve cheese. Furthermore, the source of the red color is not tomatoes, but rather paprika. Hungarian paprika, with vibrant red color and a flavor that lends exquisite taste to savory dishes.

Now that we cleared up those questions, let me present you with a beef goulash a la Livia.

Ingredients
one medium yellow onion, diced
half a Cubanelle pepper, diced
a pound of stew beef
1 tbsp spicy paprika
1 tbsp spicy Piros Arany (Hungarian crushed paprika sauce)
0.5 tsp black pepper
2 tbsp canola oil
0.25 cup red wine
water
one garlic clove, minced
salt to taste
1 tbsp corn starch
5-6 potatoes, peeled and cut into wedges

Preparation
In a pot saute the diced onion and pepper, until soft. Add the minced garlic and stir. Heat for 30 seconds. Pull the pot off the heat and add the crushed paprika sauce, the black pepper and the paprika. Stir and heat for 1 minute. Don't burn the paprika!

Add the beef and salt. Stir on high heat until browned.

Add the red wine and enough water to cover up the beef cubes. Bring to a boil and simmer until the beef is almost done (this is going to take a while).

If you desire to do so, add the potato wedges at this point, and boil together until the potatoes are done. Thicken the sauce with some corn starch.

Serve with spicy pickles or a fresh cucumber salad!