1. Cook the Bacon:

Heat a large, heavy-bottomed pot or Dutch oven over medium heat. Add the diced bacon and cook until crisp. Remove the bacon with a slotted spoon and set aside, leaving the fat in the pot.

2.  Prepare the Lamb:

Season the American lamb chunks with salt and pepper and dust with flour.

Add the lamb to the pot in batches, searing on all sides until browned. Remove the lamb from the pot and set aside.

3. Sauté the Vegetables:

Add olive oil to the pot.  Add the chopped onion and carrots and saute until the onions are soft and golden, about 5-7 minutes.

Add the garlic and saute for 1-2 minutes.

Stir in the tomato paste and cook for another 2 minutes.

4. Deglaze and Braise:

Preheat the oven to 325 degrees.

Slowly pour in the red wine, stirring constantly to deglaze the pot and scrape up any browned bits from the bottom.

Add the broth, thyme, and bay leaves. Return the seared lamb and cooked bacon to the pot. Bring the mixture to a simmer. Cover the pot and put it in the oven for 2 to 2.5 hours, or until the lamb is tender.

5. Prepare the Pearl Onions and Mushrooms:

In a separate pan, melt the butter and olive oil over medium heat. Add the pearl onions and sauté until they begin to brown.

Add the mushrooms to the pan and cook until they release their moisture and are golden brown. Season with a pinch of salt and pepper.

6. Finish the Dish:

Once the lamb is tender, remove the bay leaves and thyme bundle from the pot.

Stir in the sautéed pearl onions and mushrooms, allowing them to cook in the sauce for an additional 10 minutes.

Adjust the seasoning with salt and pepper to taste.

7. Serve:

Serve the Lamb Bourguignon over mashed potatoes, egg noodles, or with a crusty loaf of bread.

Garnish with freshly chopped parsley.