Cut the beef into 1-1/2 inch thick chunks. Slice the onion into thick chunks. Cut the carrots diagonally into 1-inch pieces.
Rinse and scrub the potatoes thoroughly to remove any dirt. Pat the excess moisture with a paper towel, then peel and cut into 1 1/2-inch piece.
Place the beef chunks into a large bowl. Season with some salt and pepper. Turn the Instant Pot on. Add 1 tablespoon of oil into the pot and heat until shimmering hot.
Working in batches, carefully add the seasoned beef chunks to the hot oil and sear each side until nicely golden brown about 4 to 5 minutes. Do not crowd the pot at once, the meat will only steam cook and you won’t get all those lovely colors and flavors.
Add in the remaining ingredients, except for cornstarch and parsley. Give it a gentle stir.
Secure with the lid and lock it, setting the valve to the sealing position. Cook on manual mode for about 35 minutes at high pressure.
Once the pot beeps, allow the pot to release pressure naturally, about 15 minutes.
Meanwhile, in a small mixing bowl, combine cornstarch with 2 Tbsp of water, stir until a smooth paste forms, and set aside.
Unlock the lid and remove the bay leaf. Pour the slurry into the stew and stir gently. Be careful not the mash the veggies while mixing.
Switch the pot to the sauté mode and simmer until the consistency is slightly thick, a few minutes more.
Transfer the stew into the serving bowls, garnish with freshly chopped parsley and serve.