Brown the stew meat in the hot oil. Add the water, Worcestershire sauce, garlic, bay leaves, onion, salt, sugar, pepper, paprika, and allspice. Cover and simmer 1-1/2 hours.
Remove the bay leaves. Add the carrots, potatoes, and celery. Cover and cook 20-30 minutes longer or until the vegetables are cooked.
To thicken the gravy, remove 2 cups hot liquid. Using a separate bowl, combine 1/4 cup of water and the cornstarch until smooth. Mix with the hot liquid and return the mixture to the pot. Stir and cook until bubbly and thickened.