Turn on your Instant Pot and press the Sauté button. Add the bacon and cook until almost crispy. Remove the bacon from the pot with a spider strainer or slotted spoon and place it in a bowl. Set aside.
Add the beef chunks in batches and cook until browned.* Remove the beef and place them in a large bowl. Continue cooking remaining beef until they are all browned. Add the flour to the cooked beef, and toss to coat.
Add the wine, beef stock, tomato paste, and Worcestershire sauce to the pot. Scrape the bottom of the pan with a wooden spoon to remove all cooked on bits.**
Next add the potatoes, carrots, onions, thyme, garlic, mushrooms, bacon, bay leaves, coated beef, salt and pepper. Carefully stir to combine.
Press the Cancel button. Secure the lid and make sure the pressure knob is in the Sealing position. Press the Manual/Pressure Cook button and use the – or + buttons to adjust the time to 25 minutes on High Pressure.
When the pot beeps, allow the pressure to release naturally for 15 minutes. Carefully turn the knob to release the remaining pressure and remove the lid.
For a thicker gravy: remove 4 Tablespoons of the cooking liquid and place it in a small bowl. Stir in 2 Tablespoons of cornstarch to create a slurry.
Press the Cancel button, then press the Sauté button. Add the slurry to the pot and stir until thoroughly combined and the gravy starts to thicken and bubble.
Press the Cancel button. Ladle the beef stew into bowls and garnish with chopped parsley.
Try to cut the beef, potatoes, mushrooms and carrots into similar sized chunks so they cook evenly.
If you need Gluten-free: substitute tapioca or arrowroot starch for the flour.
*It would be best to sauté the bacon and brown the beef in a separate skillet. This is a hassle, and most of you will tempt fate anyway. So I have some suggestions for you:
**be very diligent about removing all cooked on bits off the bottom of the pan!
When you are finished browning the beef, use a clean liner to cook your stew.
You can purchase an additional liner, or scrub the used liner clean before proceeding.
If you do get the dreaded BURN notice –
release the pressure
Once again try to scrape everything off the bottom of the pan.
Add additional liquid (there has been evaporation), I added one cup of beef stock.
Reseal the lid and cook for the remaining time. You will need to reset the clock, so you may need to guess how much time is left. It generally takes 10 to 15 minutes to build pressure, so subtract that from the original total and continue on. I set mine for 15 minutes.