In a cassola or Dutch oven, saute the bacon in a small amount of oil until lightly browned. Remove and set aside.
In the same oil, saute the beef in batches until well-browned. Remove it, and set aside with the bacon.
In the same oil, adding more if necessary, make a sofregit of onions.
Preheat oven to 325°.
When the sofregit is ready, return the beef and bacon to the cassola, add the red wine, orange peel, bay leaves, garlic, and parsley, bring to a boil, then remove from heat.
Cut a piece of cooking parchment to fit snugly inside the cassola; then carefully push it down so that it covers the beef mixture, resting lightly on top of it. Cover the cassola, and bake for 3 1/2 to 4 hours, adding olives and salt and pepper to taste after 2 hours.
Note: Estofat should be very thick, with very little liquid, and the meat should be falling apart. It is best to make this dish at least 24 hours in advance. If it has been refrigerated overnight, skim excess fat off the top before reheating.
Serves: 4 as main dish, 6 - 8 as side dish