Heat butter in a large cast iron skillet, or heavy bottomed skillet, over medium-high heat. Sprinkle the beef pieces with the flour, salt and pepper; toss to coat.
When butter is melted, add half of the coated beef and cook until the outside forms a crust. (were not fully cooking them yet.) Remove beef to a plate and continue searing the remaining beef. Add the onions to skillet. Sauté them for 1 minute.
Place the seared beef and cooked onions in the bottom of a greased 6-quart slow cooker. Pour in the beef broth, mushrooms, garlic powder, sugar, onion powder, thyme, Worcestershire sauce, bay leaves and peppers. Cover with lid and cook on high heat for 3 to 4 hours OR cook on low heat for 5 to 7 hours.
20 minutes before the cooking time is up, carefully remove a ½ cup of the liquid from the slow cooker. Pour in a small bowl and then add the cornstarch. Whisk until smooth and then add to the slow cooker. Gently stir and then cover with lid again and continue cooking the remaining time.
If the gravy is too thick, add a few tablespoons of water to thin it. If the gravy is thin, add more cornstarch mixed with a tablespoon of water. Serve beef and gravy over mashed potatoes. Enjoy!