Cut the bacon into bite sized pieces. In a large pot or dutch oven, cook the bacon on medium high heat until well browned. Remove the bacon (save for later).
In the bacon drippings, cook the cubed stew meat, onions, and garlic until the meat is slightly browned. Stir in the paprika and cook and stir for about 5 to 7 minutes.
Add the potatoes, carrots, bell peppers, undrained tomatoes, salt, and pepper. Continue to cook and stir for another 10 minutes. The mixture will be thick.
Gradually stir in the beef broth, water, and red wine. Stir, and add the cooked bacon, vinegar honey and bay leaves. Increase heat to a boil, stirring frequently. Cook for about 5 minutes, then reduce heat to a simmer and cook for 45 minutes to 1 hour.