prepare the meat and spices
Place a large pot (with a lid) over medium heat. Add lard or oil and diced onion. Pan fry for 6 - 8 minutes. Cut the meat into small pieces (approx. 1 cm or 1/2 inch). Add the bay leaves and meat to the onion and pan-fry on high heat for about 5 minutes or until golden brown. Add diced garlic, paprika powder, caraway powder, salt, and pepper. Optionally add the tomato paste and cook for a minute.
Add sauerkraut to the meat. Add the water or stock and bring it to a boil. Cover with a lid, reduce the heat to medium-low, and simmer for 1 hour.
Remove the bay leaves before serving. Divide the Segedin between six plates. Add the sour cream on top, and serve with your favorite side dish.