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Using a 5 quart stock pot or Dutch oven, add water, beef, carrots, onion, celery, 2 sliced beets, bay leaf, and 1 1/2 teaspoons Kosher salt and cook over medium-low heat, covered, for two hours, stirring occasionally.
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After two hours, shred the remaining beet with a grater or food processor and add to the pot along with tomato paste, sugar and one more teaspoon of salt. Stir well, combing all ingredients.
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Cover again and simmer for an additional 20 minutes over medium low heat.
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Remove pot from heat and discard bay leaf. Let cool and then chill in refrigerator for at least a few hours or until the fat from the beef hardens to form a top layer.
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About 30 minutes before serving, remove fat layer from soup and return pan to stove. Brings soup to a boil and add shredded cabbage. Cook for 15 minutes and then add vinegar.
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Serve immediately with a dollop of sour cream on top as a garnish.