Sprinkle 2 tbsp of the paprika over the stew beef that's been cut into bite-size cubes. Season with salt and pepper and stir well to combine. Set aside while you prep the veggies. Slice the onions, chop the garlic, and rinse and drain the sauerkraut.
Roughly chop the bacon and in a large skillet, cook until lightly brown. Remove the bacon from the pan, leaving behind the bacon fat.
Add the olive oil to the pan with the bacon fat, and working in batches, brown the beef. Don't crowd the pan; you want the beef to brown not steam. Put the browned beef cubes into a crock pot while you work on the remaining beef.
When the beef is finished browning, add the onions and garlic to the pan. Deglaze the pan with a bit of the beef stock to remove any stuck on bits. Cook the onions and garlic 8-10 minutes or until soft and translucent. Put the whole batch into the crock pot, remaining liquid and all.
Make sure the sauerkraut has been rinsed and drained. It'll be too strong if you don't rinse the brine out of it. Then, lightly squeeze it with your hands to remove most of the liquid. Add this to the crock pot, too.
Place the tomato paste, remaining beef stock, paprika, bay leaves, white wine, and bacon into the crock pot. Add about a 1/4 tsp of cayenne powder to give it a bit of kick. More if you like it spicy. Sirt well to combine. Cook on low for about six hours or on high for about three hours.
Season with salt and pepper, and serve in cute bowls with a dollop of sour cream on top or chopped parsley. Enjoy!