Heat butter or oil in large, heavy bottomed stock pot. Brown meat on all sides.
Add everything else except for the vegetables, corn starch, and cold water. Bring to a boil, then turn the heat down to a simmer and let it simmer for 2 hours. Add more water if necessary.
Add the stew vegetables, cover and let is cook 30 minutes more.
Remove the stew chunks to a bowl with a slotted spoon. Remove bay leaves.
In a small bowl, dissolve cornstarch into cold water and pour into stew liquid that is still in the pan. Let it heat and turn into a little bit of a gravy. Add the stew chunks back in and serve.