Heat olive oil in a large Dutch oven over medium-high heat. Pat the beef cubes completely dry with paper towels and season generously with salt and pepper. Working in batches to avoid crowding, brown the beef on all sides for about 3-4 minutes per batch until deeply golden. Remove with a slotted spoon and set aside.

Add chopped onion and bell peppers to the same pot, scraping up any browned bits from the bottom. Cook for 5-7 minutes until softened and lightly caramelized. Stir in minced garlic and cook for 1 minute until fragrant.

Add sweet paprika and caraway seeds if using, stirring constantly for about 1 minute to toast the spices. This releases the paprika's essential oils and prevents it from tasting raw. You'll notice it becomes fragrant and slightly darkened.

Return the browned beef to the pot along with any accumulated juices. Add diced tomatoes with their liquid, beef broth, and bay leaf. Bring everything to a rolling boil, then reduce heat to low and cover. Maintain a gentle simmer where you see only occasional bubbles breaking the surface, around 200-210°F.

Simmer gently for 1.5 to 2 hours, stirring occasionally, until the beef is fork-tender and nearly falling apart.

Add cubed potatoes and continue simmering uncovered for 25-30 minutes until potatoes are tender when pierced with a fork. The liquid will have thickened into a rich, coating sauce.

Remove the bay leaf, taste, and adjust seasoning with additional salt and pepper if needed. Serve hot with a dollop of sour cream and fresh parsley if desired.