Finely chop the onion and garlic.
In a large casserole dish fry the lardon until crispy, then move them to a plate. In the released pork fat, fry the lamb steaks on both side for a minute or until they change colour. Transfer them to a plate.
Add more oil to the pan (if needed) and gently fry the onion and garlic until soft. Put the lamb and lardons back, add the spices and tomato puree then pour over the wine. Cook for a couple of minutes until the jus reduces to almost nothing.
Cut the carrots into big chunks, the chilli in half and the bell pepper in half (discard the seeds and stems first). Chop the tomato, if used.
Put the these in the pan, then add enough water to cover them well. Season with salt and pepper (you can add a spoonful of bouillon, or a stock cube if you like), add the bay leaf and bring to the boil.
Cover and cook for 60-90 minutes, until the lamb easily comes off the bone.
Take the lamb steak onto a plate and dice the meat, discard the bone. Meanwhile, remove the pepper halves, chilli and bay leaf and discard them, then turn up the heat under the stew and reduce it to a thick sauce. Return the lamb pieces to the pan and warm through. At this point I normally add some green veggies - such as spinach, green beans, kale or green peas and cook it for a further 3-5 minutes. Note: this is not don in a typical Hungarian recipe, but I prefer it!
Serve warm with mashed potatoes or steamed rice.