Heat oil in heavy casserole. Add onions and bell pepper; cover and sweat until translucent (do not brown). Add garlic; cook 1 minute.
Add beef; season lightly with salt; cover and sweat several minutes until exterior is no longer raw.
Add paprika, black pepper, hot pepper, caraway, and bay leaves; cook gently 10–15 minutes so meat absorbs spices.
Add crushed tomatoes; bring to a gentle simmer. Cover and cook, stirring occasionally, until meat is tender (~1 hour). Adjust seasoning; remove bay leaves.