Place cubed round steak in a stockpot; sprinkle with salt and pepper.
Sprinkle onions along with garlic cloves over the meat with parsley, thyme and bay leaf. Add 2 strips of lemon peel and juice, red wine and oil. Marinate the meat for 2 hours, turning occasionally.
Cook bacon in a skillet for 2 to 3 minutes.
Drain the steak, reserving the marinade, and toss with flour until evenly coated. Fry with the bacon for several minutes. Strain the marinade into the pan, stir well to blend, and add beef broth. Bring to a boil, reduce the heat, cover the pan tightly, and simmer gently for 1 1/2 to 1 3/4 hours, or until the meat is tender. Add mushrooms and cook for 5 to 10 minutes. Serve hot.
Servings: 6