Old-Time Beef Stew

I've been going through a recipe book my mom gave all of us when I was first married. I think she got tired of me calling and asking for all my favorite recipes all the time. This is one that I really like. And once I left out the onions Matt liked it too.

2 lbs beef chuck, cut into 1/2 inch cubes - (I usually buy a small back of pre-cut beef stew meat. Cause I'm lazy like that.)
2 Tbsp. oil
1 tsp. Worcestershire sauce (I omit this.)
1 clove garlic
1 medium onion, sliced
1-2 bay leaves
1 Tbsp. salt
1 tsp. sugar
1/4 pepper
8 carrots, peeled and sliced or 1 pkg. baby carrots
6 potatoes, peeled and cubed
2 Tbsp. flour

--In large pot, thoroughly brown meat in oil. Add two cups hot water and next 7 ingredients. Cover; simmer 1 1/2 hours hours, stirring occasionally to keep from sticking. Remove bay leaf and garlic. Add vegetables. Cover and cook 30-45 minutes, or until vegetables are tender. Serves 6-8.

For Gravy: Skim most of fat from liquid; measure 1 3/4 cup liquid. Combine 1/4 cup water and 2 Tbsp. flour until smooth. Stir slowly into hot liquid. Cook and stir until bubbly, continue for three minutes. Stir into vegetable mixture.