1Preheat oven to 325 F. Pat meat dry. Season all over with salt and pepper.
2Heat 2 tablespoons olive oil in large Dutch-oven or oven-proof pan with lid over medium-high heat. Working in batches, add beef to pan in one layer. Brown on all sides. Transfer beef to a bowl.
3Add cognac to pan and deglaze pan over medium-high heat, scraping up bits. Allow to reduce by half. Pour cognac over beef.
4Coarsely chop 2 carrots. Heat 2 tablespoons olive oil in same pan. Add chopped carrots, onion and garlic. Sauté 3 minutes over medium heat. Add beef with cognac, wine, stock, tomato paste and thyme. (Beef should be covered by the wine and stock. If not, add more wine or stock to cover.)
5Bring to a boil, reduce heat to low and cook 2 minutes. Cover and place in oven. Bake until meat is very tender, 2 1/2 -3 hours.
6About 30 minutes before beef is done, cut remaining carrots in 1/2" slices. Steam or blanch carrots until crisp tender; drain.
7Heat 1 tablespoon olive oil in skillet over medium heat. Sauté pearl onions and mushrooms until light golden brown.
8Remove beef from oven. Strain liquid from stew into a saucepan. Separate beef from the cooked vegetables and discard vegetables. Boil liquid until reduced by half and thickened to a sauce consistency, skimming fat from surface. Add sugar. Season to taste with salt and pepper.
9Add beef, carrots, pearl onions and mushrooms to stock. Simmer 15 minutes to heat through. Serve in warm bowls.
10Beef Bourguignon may be prepared up to two days in advance. Cover and refrigerate. Before reheating, discard any solidified fat from surface. Reheat over medium-low heat on stovetop or in a 325 F. oven.
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