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In a medium bowl, combine flour with the salt and pepper. Toss cubed beef in flour mixture, coating all sides and reserving any leftover flour.
In a large Dutch oven or soup pot, heat 2 tablespoons olive oil over medium heat. Brown beef on all sides and remove to a plate. Add remaining tablespoon of olive oil to the pan. Stir in celery, onion, carrots, rutabaga and mushrooms, scraping up any brown bits from the bottom of the pot. Cook vegetables until softened, stirring, for 3 minutes.
Add barley and continue to cook, stirring for an additional minute. In a seperate bowl, stir 1/4 cup beef broth into remaining flour until completely blended. Add this, along with remaining broth and beef cubes, into the pot. Bring to a boil then reduce heat and simmer, uncovered, stirring occasionally, until beef is tender and stew is thickened, about 1 hour. Remove and discard bay leaf. Garnish with parsley and serve.