In a Dutch oven of about 5Qt, sauté the chopped bacon over medium high heat until the bacon gets brown, and the fat is completely released.
With the help of a slotted spoon, transfer the bacon to a large platter
While the bacon still cooks, season the lamb pieces with about 1/2 Tbsp of salt and about 1 tsp of pepper. Sprinkle with about 1/4 cup of flour and toss very well to coat. Cook the lamb into 2 batches into hot bacon grease over a medium heat until everything is browned (for about 3 to 4 min per side) then transfer to the plate with the bacon.
Add the diced onion and sauté for about 2 minutes. Add in the garlic and cook for about another additional minute, stirring constantly.
Add in the sliced mushrooms; then bring to a simmer, then cook uncovered for about 10 min.
Preheat your oven to a temperature of about 325˚F.
Return the bacon and the lamb to the pot and add in 4 cups of broth, about 1 Tbsp of tomato paste, 1 tsp of salt, 1/2 tsp of pepper, 1/2 tsp of dried thyme and about 2 bay leaves.
Stir in the potatoes and the carrots, making sure that the potatoes are mostly submerged into the liquid.
Bring your ingredients to a boil; then cover and transfer to your preheated oven at a temperature of about 325˚F for about 1 hr and about 45 min.
When you are done, serve and enjoy your lamb stew!
You can serve with cooked rice and enjoy your delicious dish