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1. Cut steak into 1/2-inch pieces. In shallow dish combine flour, dried basil, pepper, and salt; add meat and toss to coat.
2. In 4- to 5-quart Dutch oven heat oil over medium-high heat. Add meat; cook until browned on all sides. Stir in any remaining flour mixture. Stir in barley, tomatoes, carrots, beef broth, and the water. Bring to a boiling; reduce heat. Cover and simmer for 10 minutes.
3. Ladle soup into bowls and top with fresh basil, if desired.