Heat 1 tablespoon canola oil in a Dutch oven over medium-high heat. Stir in garlic and onion, and cook until softened and translucent; remove from pan. Pour 2 tablespoons canola oil into Dutch oven. While this heats, mix the beef with salt and pepper. Sear the beef in batches until browned all over, about 5 minutes.
Stir in caraway seeds and flour, cook until flour is incorporated and the caraway seed is fragrant, about 1 minute. Pour in beef broth; add bay leaves, sugar, nutmeg, and onion mixture. Bring to a boil, then reduce heat to medium-low, cover, and simmer until the meat is tender, about 2 hours.
Stir in the potatoes and carrots; continue cooking until the vegetables are tender, about 30 minutes. Stir together the cornstarch and water; stir into the stew along with the parsley. Simmer until thickened, about 5 minutes.