Cut steak in bite-size pieces; coat with flour. In 12-inch skillet, quickly brown half the steak at a time on both sides in butter or margarine. Remove from heat. Return all meat to skillet; add onion, parsley, garlic, bay leaf, salt, and a dash of freshly ground pepper. Stir in mushrroms, wine and 1/2 cup water.

Bring to a boil; reduce heat and simmer, covered, for 1 hour or until meat is tender. Add more water if necessary. Remove bay leaf. Serve over rice.