This traditional Cuban dish is true to its English translation of "old clothes," because of the tender chunks of shredded beef that resemble torn clothing.
In a large stock pot, combine the water, flank steak, bay leaves, sliced carrots, and 1 spanish onion cut in four. Cook at a medium heat for 1 ½ hours or until meat is tender to a fork.
Reserve some of the stock from the pot and strain the rest. Let the steak cool and shred. In a large skillet over medium heat add the olive oil, garlic, peppers, and the julienned onions and cook until translucent. Add the shredded steak, crushed tomato, beef stock, and red-wine vinegar. Season with salt and pepper to taste.
Cook all of the ingredients together for 1 hour. Serve over white rice.