1. In a six-quart pot, sauté onion in oil until transparent.
2. Add pepper and beef and sauté for 15 minutes, stirring occasionally.
3. Add sauces, spices, garlic and mushrooms. Simmer for 45 minutes.
4. Dissolve flour in water and pour into the sauce; add the bay leaves.
5. Cook until thickened. Pour over spaghetti.