Place steak in a large oven-proof skillet or Dutch oven; set aside. Combine remaining ingredients except water and cornstarch; mix well and pour over steak. Cover and bake at 325 degrees for 2-1/2 to 3 hours, or until beef is tender. In a small bowl, combine water and cornstarch; stir into beef mixture. Bake an additional 15 minutes, until gravy is thickened.
Tip: An easy way to make lump-free gravy…combine the cornstarch or flour with cold water in a small lidded jar and shake it up. Smooth!
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