heat halve of oil in ovenproof saute pan oven med heat. add half the meat and sear on all sides. season well, remove meat and set aside.
pout remaining oil in pan and heat. add rest of meat, shallots and garlic. sear on all sides, then return first batch of meat to pan. season with salt and black pepper if needed. sprinkle flour over meat and mix well. cook 4-5 minutes over med heat.
pour wine into saucepan, add bay leaf and bring to a boil. cook until reduced by 1/2 then pour remaining liquid into saute pan containing meat.
add beef stock and herbs. bring to a boil. cover pan and cook 2 hours in oven.
thirty minutes before end of cooking time, heat butter in frying pan over med heat. add pearl onions and season. cook 5 minutes. add mushrooms, season to taste and cook 4 minutes.
add vegetables to stew and continue cooking in over.