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Heat the butter and oil in a large flameproof casserole and cook the meat for 10 minutes, until browned all over. Remove the meat from the pan with a slotted spoon.
Add the onions and mushrooms to the pan, adding more oil if necessary, and fry until softened. Season to taste, add the flour and stir well so that the flour absorbs the fat.
Return the meat to the pan, pour in the stout and add the bay leaf and brown sugar. Stir well to mix.
Cover and cook gently, either on top of the stove or in the oven at 180°C, gas mark 4, 350°F for about 2 1/2 hours or until the meat is tender.
2lb stewing steak, cut into 5cm/2in cubes 900g
2 medium onions, skinned and sliced
8oz button mushrooms, halved 225g
1cup stout 1/2pt/280ml
2tbsp plain flour
1tsp soft dark brown sugar
1tbsp vegetable oil
1/2oz butter 15g
1 bay leaf
salt & pepper
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