Cut the beef into small cubes. Determine the size of the cubes according to your taste, you can cut them coarser or finer. Chop the onion into small pieces.
Heat lard or oil in a high saucepan. Fry the meat in portions in it over high heat. Take just enough meat to cover the bottom of the pot and sear it, stirring every now and then. Then take the browned portion of meat out of the pot and place it temporarily on a large plate. Fry all the beef in this way, a little at a time.
Then put a little oil or lard back into the pot and turn the heat down low on the stove.
Now add the onions to the pot and simmer on low heat until soft, stirring with a wooden spoon. Then add the tomato paste to the pot and let it sauté gently for a few minutes, stirring constantly. The roasted aromas that are released give the finished goulash its typical taste.
Now add the paprika, salt and pepper and stir well. Pour the browned meat completely into the pot and pour on the red wine. Add the bay leaf, a piece of star anise and 3 cloves. If necessary, you can add a little more hot water.
At a moderate temperature, the goulash is now stewed, covered, in its own juices for at least 1,5 h. Better are 2-2.5 h. Stir from time to time and check whether there is still enough liquid.
Only if necessary you can pour some hot water or red wine on the side. Better never directly on the meat and always very little liquid. The meat must stew in its own juice, this gives this typical Hungarian Pörkölt taste!
After cooking time, remove the spices and add a little hot water as needed. Taste your Hungarian goulash, add the pinch of sugar and season to taste.