Trim excess fat from beef cubes and if they are large cut into smaller cubes.
Put the flour on a plate or a sheet of waxed paper. Add salt and pepper and mix.
Dredge the beef cubes in the flour and shake off excess.
Heat 1 tablespoon vegetable oil or olive oil in large sauté pan or Dutch oven. Brown the beef cubes over medium heat on all sides. Remove beef cubes from pan. Add about 1/2 cup of water to pan and scrape up the crispy bits left from cooking the beef. Return beef to pan and let simmer gently. Peel and cut the carrots and add to the stew. Simmer gently while preparing the potatoes. Peel and cut potatoes, add to the stew along with the bay leaves and enough water to barely cover. Continue cooking at a gentle simmer approximately 1 - 1 1/2 hours. Remove the bay leaves before serving as they are a choking hazard.
If desired you can add frozen peas to the stew about 10 minutes before it is finished cooking.