Heat 1 tablespoon oil in a saucepan and saute the bacon over low heat until browned, then remove and set aside.
Cook the beef in three batches: fry the first batch in the bacon fat until well browned. Place in another large saucepan. Add a tablespoon of oil to the first saucepan, fry the onions and garlic briefly, then add the second batch of beef and cook until browned. Transfer to the large saucepan. Heat the last tablespoon of oil and fry the last batch of beef, adding the tomato paste when well browned. Transfer to the other saucepan.
Add the bacon to the beef with the stock and red wine. Season with salt, pepper and paprika. Bring to the boil, reduce heat, cover and simmer 45 minutes.
Add the potatoes and cook 15 more minutes. Add cayenne pepper to taste. Serve, garnished with a little creme fraiche.