In a large rondeau or enameled cast iron pot over low-medium heat, add in the bacon and cook until crispy browned, which takes about 6 to 7 minutes. Using a slotted spoon, set the crispy bacon aside in a bowl, leaving as much rendered fat in the pan as possible.
Next, turn the heat up to medium-high. Add in the ground beef and spread it across the pan to cover more surface area for a better sear. Let it sit untouched for 3 to 4 minutes. Then, break up the ground beef using a wooden spoon and continue to cook until browned and cooked through, which takes about 2 to 3 more minutes. When it’s done, season the beef with salt and pepper and mix to combine. Using a slotted spoon, set the ground beef aside, leaving as much fat in the pan as possible.
Add in the onions, turn the heat down to medium. Gently season with salt and sauté for 5 minutes. Turn the heat to low and cook until caramelized for 10 minutes, stirring occasionally. Add the celery and carrots, gently season with salt, and stir over low-medium heat for 10 minutes to sweat them.
Next, add in the peppers, gently season with salt, and sauté for 3 to 4 minutes over medium heat. They should be a little brown on the edges. Stir in the garlic and cook just until fragrant, about 30 to 45 seconds. I then pour in the diced tomatoes and stew them down to help deglaze the pan.
Stir in the oregano, bay leaves, and paprika until combined. Then stir in the tomato paste. Cook while constantly stirring until it becomes a rust-like color, about 3 to 4 minutes.
Deglaze with beef stock and then add in the diced tomatoes and crushed tomatoes. Season with salt and pepper. It should be delicious at this stage.
Stir in all the beef and most of the bacon and cook for 3 to 4 minutes. Mix in the cheese until completely melted.
If you are serving it on a single order basis, combine a cup or two of the goulash with the cooked macaroni and serve with additional shredded cheese and leftover crispy bacon.
Notes
For the best goulash, cook and chill your macaroni in advance. Adding hot pasta directly to the hot sauce will cause the noodles to continue cooking and absorb too much liquid. By cooking to al dente, rinsing, and then chilling the pasta before combining it with the rich, meaty sauce, the noodles hold their shape and absorb flavor without turning mushy. Pick the right pot: A large, heavy-bottomed rondeau pot or Dutch oven works best. Both distribute heat evenly and prevent the ingredients from scorching as you build the sauce.Build layers of flavor: Take the time to brown the beef, caramelize the onions, and get some color on the peppers. These steps may seem insignificant, but rushing them can leave your goulash tasting flat instead of rich and flavorful. Fixing a thin sauce: If your sauce looks watery, simmer it uncovered for 10 to 15 minutes or until it has thickened. As a last resort, you can stir in a cornstarch slurryto thicken the consistency. Crockpot version: To make this in your slow cooker, first cook the bacon, beef, and veggies on the stovetop as usual. Transfer everything to the crockpot with the tomatoes, stock, and seasonings, and cook on low for 6 to 8 hours or high for 3 to 4 hours. Stir in the cooked pasta and cheese just before serving.Make-Ahead: You can make the goulash sauce up to 3 days ahead of time, then combine it with the pre-cooked and chilled pasta just before serving.How to Store: Store the goulash sauce and macaroni separately in airtight containers in the fridge. They will keep for up to 3 days in the refrigerator. The sauce can also be frozen for up to 3 months.