Turn the Instant Pot to the sauté setting. Once hot, add olive oil and the beef cubes, searing them until they are browned on all sides (about 5-7 minutes). Remove the beef and set aside.
In the same pot, add the diced onion and sauté until it becomes translucent (3-4 minutes). Stir in the minced garlic and sauté for another minute until fragrant.
Return the beef to the pot. Add the carrots, potatoes, beef broth, tomato paste, thyme, paprika, bay leaf, salt, and pepper. Stir well to combine all the ingredients.
Close the lid on the Instant Pot and set the steam release handle to sealing. Cook on high pressure for 35 minutes. Once finished, allow the pressure to release naturally for 10 minutes, then do a quick release for any remaining pressure.
Open the lid and stir in the frozen peas. If you desire a thicker stew, you can mix cornstarch with a little water to create a slurry, then stir it into the stew and cook on the sauté setting for a few additional minutes until thickened.
Adjust seasoning with salt and pepper to taste. Remove the bay leaf before serving.
Notes
Serve the stew in deep bowls, garnished with freshly chopped parsley and accompanied by a side of crusty bread for dipping.