Step 1: Pat the beef cubes dry with paper towels and season generously with salt and freshly ground black pepper. This helps create a good sear.
Step 2: Heat 2 tablespoons of olive oil in a large Dutch oven or heavy-bottomed pot over medium-high heat until shimmering. Brown the beef in batches (do not overcrowd the pot) until well-seared on all sides, about 3-4 minutes per batch. Remove browned beef to a plate and set aside.
Step 3: Reduce heat to medium, add the remaining 1 tablespoon of olive oil to the pot. Add the diced yellow onion and cook, stirring occasionally, until softened and translucent, about 5-7 minutes.
Step 4: Stir in the minced garlic and cook for another minute until fragrant. Be careful not to burn the garlic.
Step 5: Add the tomato paste to the pot and cook, stirring constantly, for 2-3 minutes. This step deepens the tomato flavor.
Step 6: Pour in the beef broth, scraping up any browned bits from the bottom of the pot with a wooden spoon. This deglazing step adds tremendous flavor to the sauce.
Step 7: Stir in the Hungarian sweet paprika, crushed tomatoes, bay leaves, dried oregano, and sugar (if using). Return the browned beef and any accumulated juices from the plate to the pot.
Step 8: Bring the mixture to a gentle simmer. Once simmering, reduce the heat to low, cover the pot tightly, and cook for 2 to 2.5 hours, or until the beef is fork-tender. Stir occasionally to prevent sticking and ensure even cooking.
Step 9: About 20 minutes before the goulash is done, bring a large pot of salted water to a rolling boil. Add the egg noodles and cook according to package directions until al dente. Drain the noodles well.
Step 10: Once the beef is tender, remove the bay leaves from the goulash. Taste the goulash and adjust seasonings (salt, pepper, or more paprika) as needed. If the sauce is thinner than desired, remove the lid and simmer for an additional 10-15 minutes to reduce slightly.
Step 11: Stir the cooked and drained egg noodles directly into the goulash sauce, or serve the goulash over a generous bed of noodles. Garnish with fresh chopped parsley and, if desired, a dollop of sour cream or Greek yogurt. Serve hot and enjoy!