In a large pot, over medium heat melt butter and add onion. Cook the onion until soft and translucent. Stir in caraway seeds and paprika and mix well.
In a bowl, dredge the stew beef with flour. Brown the beef in the pot with the onion mixture and cook for about 2-3 minutes.
Slowly add about 1/4 cup of the beef broth to deglaze the pan, and lift the flavorful bits off the bottom of the pan. Then add remaining broth, diced tomatoes, tomato paste, (potatoes and carrots if using), bay leaf, salt and pepper.
Stir and bring to a boil, cover, then reduce to a simmer for about 1 1/2 -2 hours or until tender.
Before serving sprinkle with fresh chopped parsley, if desired and serve over hot buttered noodles.