Peel the potatoes, rinse them thoroughly, then cut them into approximately 2–3 cm (1-inch) cubes. Finely dice the onion and mince the garlic.
Heat the lard in a large pot over medium heat. Add the onion and cook for 5–6 minutes until soft and translucent. Stir in the garlic and cook for another 30 seconds.
Remove the pot from the heat, sprinkle in the Hungarian sweet paprika, stir quickly, then immediately add the diced potatoes. Mix well so the potatoes are evenly coated with the seasoned onion mixture.
Pour in the water or stock until the potatoes are well covered. Add 2 teaspoons of salt, the bay leaves, marjoram, and ground caraway, then season with black pepper and additional salt if needed.
Bring to a boil, then reduce the heat and simmer partially covered for 20–25 minutes, or until the potatoes are completely tender. Stir once or twice during cooking.
Once the potatoes are cooked, remove one ladleful of potatoes together with a little of the cooking liquid. Mash them with a fork or briefly blend them with an immersion blender, then stir the mixture back into the stew. This naturally thickens the potato stew and gives it a creamy texture.
In a bowl, whisk the sour cream and flour together until smooth. Gradually whisk in a few ladlefuls of the hot cooking liquid to temper the mixture, then slowly pour it back into the pot while stirring continuously.
Simmer gently for another 3–5 minutes so the flour cooks through and the potato stew thickens.
Finally, stir in the mustard and vinegar. Taste and adjust the seasoning with salt, black pepper, or a little more vinegar if needed. Remove the bay leaves before serving and garnish with freshly chopped parsley.
Hungarian potato stew is delicious served with fried sausage, meatballs, pork stew, hot dogs, or a fried egg, but it is also a satisfying meal on its own with fresh crusty bread.
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