Beef and Onion Stew (Stifado)

1 medium onion, chopped2 cloves garlic, minced
3 tablespoons olive oil
1 (2 pound) boneless beef chuck, tip or round, cut into 1-inch cubes
1/2 cup dry red wine
2 tablespoons red wine vinegar
1/2 teaspoon salt
1/4 teaspoon coarsely-ground pepper
1 bay leaf
1 stick cinnamon
1 (8 ounce) can tomato sauce
1 1/2 pound pearl onions, peeled
Crumbled feta cheese

Cook and stir chopped onion and garlic in oil in Dutch oven over medium heat until onion is tender;remove with slotted spoon. Cook beef in remaining oil, stirring frequently, until all liquid is evaporatedand beef is brown on all sides, about 25 minutes; drain fat. Return onion and garlic to Dutch oven. Stirin remaining ingredients except onions and cheese. Heat to boiling; reduce heat. Cover and simmer 1hour and 15 minutes.

Add white onions. Cover and simmer until beef and white onions are tender, about 30 minutes.Remove bay leaf and cinnamon. Garnish with cheese.