Oven Swiss Steak

8 bacon strips

2 pounds round steak (3/4 inch thick)

2 cups sliced fresh mushrooms

1 can (14-1/2 oz) diced tomatoes -- undrained

1/2 cup chopped onion

2 teaspoons dried tarragon

2 tablespoons water

1 cup whipping cream

In a large ovenproof skillet, cook bacon until crisp. Remove, crumble and set aside. Discard all but 1/4 cup drippings. Trim beef; cut into serving-size pieces. Brown on both sides in drippings. Top meat with mushrooms, tomatoes and onion. Sprinkle with tarragon and bacon. Cover and bake at 325 for 1-1/4 to 1-3/4 hours or until meat is tender, basting twice. Remove meat to a serving platter; keep warm. Combine cornstarch and water; add to skillet and bring to a boil. Cook and stir for 2 minutes. Reduce heat; stir in cream. Simmer, uncovered, for 3-4 minutes or until sauce thickens. Serve over meat.