Hungarian Goulash

3 lbs. beef (cut in squares)
6 oz. bacon (cut in dice)
½ pint cream
4 oz. chopped onion

Cook onion and bacon; add salt and pepper; pour over them ½ pint water in which ½ teaspoon of extract of beef is added. Add the meat and cook slowly one hour; then add cream with paprika to taste and simmer for two hours. Add a few small potatoes.