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1
Dredge the steak in the flour, shaking off any excess, and sprinkle with 1/2 teaspoon of the salt and 1/8 tsp black pepper. Heat the oil for 1 minute in a 3 quart flameproof casserole or a dutch oven over moderately high heat. Add the steak and brown for 6 to 7 minutes on each side. Remove the steak and set aside.
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2
Preheat the oven to 350 degrees. Add the onion, celery, green peppers, and 1/2 tsp salt and 1/8 tsp pepper to the casserole, and cook over moderate heat, stirring occasionally for 5 minutes. Stir in the garlic, beef stock, tomato sauce, sugar, basil, thyme, oregano, bay leaf, and red pepper. Bring to a boil. Return the steak to the pan and spoon some of the vegetable mixture over it. Cover, transfer to the oven, and bake until tender 1 1/2 to 2 hours.
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3
After the meat has been in the oven for about 1 hour, bring the water to a boil in a medium size saucepan over moderately high heat. Add 1/4 tsp salt and grits, reduce the heat to low, and simmer, stirring constantly until thickened, about 15 minutes. Remove from the heat, beat in the butter, cheese, and egg, and let cool for 15 minutes.
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4
Raise the oven temperature to 400 degrees. Remove the casserole/dutch oven from the oven, skim any fat from the drippings, and remove the bay leaf. Spoon some of the sauce from the bottom of the casserole or dutch oven over the steak, arrange the grits in mounds on top, then sprinkle them with the paprika.
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5
Return the casserole/dutch oven to the oven and bake, uncovered, for 25 to 30 minutes or until bubbling.
