Portuguese Beef Stew

Ingredients

• 3 lb. beef stew meat, cut into 1 inch cubes
• 2 Tbsp. oil
• 2 c. water
• 8 oz. canned tomato sauce
• 2 bay leaves
• 2 Tbsp. vinegar
• 2 tsp. salt
• 1 tsp. garlic powder
• 1 tsp. crushed red pepper
• 1/2 tsp. ground cinnamon
• 1/2 tsp. ground allspice
• 5 medium potatoes, peeled and cut into 1 inch pieces
• 4 medium carrots, cut into 1/2 inch pieces
• 1/2 c. cold water
• 3 Tbsp. cornstarch