The ratio of onions to meat should be almost 1:1, as the onions create the rich juice (Saft) of the goulash. Patience in stewing the onions is key – they should be dark brown, caramelized, but not burned.
For authentic Saftgulasch, the meat is not browned beforehand but stewed with the onions, allowing the juices from the onion and meat to combine from the start.
Heat the lard in a large pot or Dutch oven.
Add the diced onions and slowly stew them over low heat (this takes 15–20 minutes). The onions must be dark brown, caramelized, but not burnt. This caramelization provides the colour and thickness of the sauce.
Remove the pot from the heat (or reduce the temperature to minimum) and quickly stir in the tomato paste and paprika (sweet and hot). Sauté the paprika for only about 30 seconds to prevent it from becoming bitter.
Add the diced beef, caraway, marjoram, and garlic. Mix everything well.
Deglaze the mixture with vinegar and some of the beef broth (or water), just enough to barely cover the meat. Add salt and pepper.
Bring to a boil, then reduce the temperature to minimum (it should only simmer very gently) and cook covered for 2.5 to 3 hours. The meat should be completely tender after the long cooking time.
Stir occasionally during cooking and add more broth as needed. The sauce will gradually thicken from the dissolved onions.
When the meat is tender, season the goulash to taste. If the sauce is too thin, you can remove the lid and cook for the last 15 minutes to evaporate excess liquid. If it is too thick, add a little more broth.
Let it rest for a while to allow the flavours to meld (goulash is best on the second day).
Serve hot, ideally with bread dumplings (Semmelknödeln) or a slice of bread.