Brown lamb in a tablespoon of oil over medium high heat then place in a casserole dish. Push the 3 cloves into the small onion then add that to the casserole dish, along with the cinnamon, nutmeg and bay.
In the reaming oil, saute the onion. Lower heat then stir in garlic. Stir in the crushed tomatoes, tomato paste, red wine, water, sugar, salt and pepper, bring to a boil then pour over the lamb.
Cover with baking paper then a lid and roast in the oven at 150 degrees C until done, about 2 1/2 hours. Remove fat from surface, take out the clove studded onion, bay and cinnamon then serve.