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In a large pot or Dutch oven, heat 2 tablespoons of olive oil over medium-high heat. Season the beef chunks with salt and pepper, then brown them in batches. Set the browned beef aside.
In the same pot, add the remaining olive oil and the shallots. Sauté them until they start to soften and take on a golden hue.
Return the beef to the pot. Add the tomato paste, red wine, beef broth, minced garlic, cinnamon stick, cloves, bay leaves, dried oregano, ground allspice and sugar.
Bring the mixture to a boil, then lower the heat to a simmer. Cover and let it cook for about 2 hours, or until the beef is tender.
Check the seasoning at the end of the cooking time and adjust with salt and pepper as necessary.
Dish up the stifado hot, garnished with chopped parsley. It’s wonderful with crusty bread, mashed potatoes, or a simple rice pilaf.