12 ounces new potatoes (halved or quartered, depending on the size)
6 carrots, peeled and cut into 1-inch pieces
10 ounces pearl onions, peeled
Parsley for garnish
Trim the lamb of any excess fat and cut into 1-1/2 inch cubes. Combine the flour, salt and pepper in a shallow dish. Dredge the lamb, shake off the excess flour and set aside.
Fry the bacon pieces over medium heat in a dutch oven until crisp. Transfer to a paper towel lined plate and blot. Remove all but 1 tablespoon of the bacon fat from the dutch oven and add the olive oil. Add the lamb cubes and cook, turning with a pair of tongs until they are lightly browned on all sides, about 3 to 4 minutes.
Add the onion and garlic and continue cooking about 2 more minutes. Add the wine, stir to combine, scraping up any browned bits from the bottom of the pan.
Add the bacon back to the pan along with the sugar, chicken stock, bay leaves and thyme. Mix well, bring to a low simmer (you may need to reduce the heat), then cover tightly and cook for 45 minutes to one hour. Test the meat for tenderness and continue cooking a little longer if you find it’s still tough.
Once the meat is tender, add the potatoes, replace the cover and continue cooking for 10 more minutes. Add the carrots and onions, cover again and cook for an additional 20 minutes, or until all the vegetables are tender.
Spoon the stew into bowls and ladle a little of the gravy over top. Garnish with parsley and serve immediately.