To begin, heat the lard in a heavy based casserole over medium heat. Add the chopped onions and cook slowly, stirring often, until soft, glossy and lightly golden. This onion base forms the backbone of the stew, so allow sufficient time before moving on.
Remove the pan briefly from the heat and stir in the sweet paprika and hot paprika if using. Mixing off the heat prevents bitterness and preserves the spice aroma. Once combined, return the pan to low heat to continue.
Add the garlic, caraway seeds, green pepper and tomato. Stir well and cook for 3 to 4 minutes until the vegetables soften and release their juices, creating a thick, fragrant paste before adding the meat.
Add the beef cubes and stir thoroughly to coat them in the paprika mixture. Increase the heat slightly and cook until the meat loses its raw colour on all sides, ensuring it absorbs the seasoning before simmering.
Sprinkle in the salt and pour in the water or stock. Stir gently, scraping the base of the pan to release any caramelised flavour, then bring the stew to a gentle simmer.
Cover partially with a lid and cook over low heat for 90 minutes, stirring occasionally. The liquid should barely bubble, allowing the meat to soften gradually and the sauce to thicken naturally.
Check the sauce halfway through. If it appears too dry, add a small splash of water. Pörkölt should be thick and rich, never soupy. Continue cooking until the meat is fork tender.
Taste and adjust seasoning if needed. Turn off the heat and allow the stew to rest for 10 minutes, which helps the flavours settle before serving.
Serve hot with nokedli, boiled potatoes or crusty bread. A spoonful of sour cream on the side is traditional but optional, allowing diners to adjust richness to taste.