Traditional goulash is a beef stew made with onions, Hungarian paprika powder, tomatoes, green peppers, potatoes and noodles; as with most traditional dishes, there is no single definitive version. Goulash is the most famous Hungarian cuisine, but within Hungary, most folks have their own variations on this traditional dish.
A classic recipe for a simple Hungarian goulash that will feed a family of four calls for the following ingredients: about 600 grams of tender beef cut into half inch cubes, two tablespoons of oil, two chopped onions, two cloves of garlic, and two diced carrots. One diced parsnip, two celery leaves, two peeled and chopped tomatoes, two fresh green peppers, and three sliced potatoes are also needed, as are one tablespoon Hungarian paprika powder, one teaspoon ground caraway seed, one bay leaf, some ground black pepper and salt, and water.
Heat the oil in a pot and braise the onions. Stir the onions while sprinkling in the paprika powder. Add the beef cubes and sauté them until they turn white, then add the crushed garlic, ground caraway seeds, some salt and ground black pepper and the bay leaf. Add enough water to cover the content of the pan and let it simmer on low heat.
About 90 minutes later add the diced carrots, parsnip, potatoes, the celery leaf and some more salt and water if necessary. When the vegetables and the meat are almost done add the tomato cubes and the sliced green peppers. Let it cook on low heat for another few minutes, add noodles and serve.