Preheat the oven to 160°C conventional (140°C fan-forced).
In a large bowl, mix the flour and paprika. Throw in the beef chunks and toss to coat them in the flour.
Place a large ovenproof pot over high heat. Add 1 tablespoon of the olive oil, floured beef, onion, garlic, tomato paste, red wine vinegar, beef stock, pasta sauce and bay leaves. Give it a stir. Bring it to the boil, then turn off the heat.
Place the lid on the pot and cook in the oven for 3 hours, until the beef is flaking apart with a fork.
About 10 minutes before the beef is ready, place a medium frying pan over high heat. Add the remaining olive oil, the butter and mushrooms to the pan. Cook, stirring, for about 5 minutes until browned and caramelised.
Cook the gnocchi according to packet instructions (about 3 minutes for fresh gnocchi). Drain and set aside.
Add the mushrooms to the pot with the beef and stir to combine. Gently stir through the cooked gnocchi. Season well and serve in bowls with a dollop of sour cream.