Preheat oven to 350 degree F. Place meat in a 4-quart Dutch oven. Sprinkle with salt and pepper. Stir in stew vegetables and mushrooms. In a medium bowl combine cream of celery soup, beefy mushroom or cream of mushroom soup, the water, and, if desired, sherry; pour over stew. Stir to combine.
Cover and bake in preheated oven for 2 to 2-1/2 hours or until meat and vegetables are tender. Stir. Cut up any large vegetable chunks before serving. Makes 6 servings.