Preheat the oven to 350 F. Bring the beef stock to a simmer and keep hot, covered.
Season beef with salt and pepper and toss with flour to coat. Shake off excess flour.
Warm vegetable oil in a saute pan and fry the beef over high heat, uncovered, until each piece is covered with a crispy crust. (It is important not to let the beef release any juice.)
Transfer the beef to a heavy Dutch oven. Add a little more oil to the pan and saute the onions, stirring frequently, until caramelized, about 25-30 minutes.
Transfer to the Dutch oven and deposit over the beef.
Drain the potatoes and cut each into thirds, and then quarter each third.
Season the potato pieces with salt and pepper and arrange on top of meat and onions.
Pour the beef stock over the potatoes. The liquid should be about level with the top of the stew; add some boiling water, if necessary.
Adjust the seasonings. Add bay leaf.
Bake, uncovered, for 1 hour 30 minutes, or until the potatoes are tender, but not falling apart.
Turn the oven to ""broil"" and cook for 10 more minutes.
Remove from the oven, add dill, and mix. Serve with lots of bread to absorb the sauce.