Turn the instant pot on sauté and melt the butter.
Add the 4 cloves of minced garlic and 1 chopped onion. Sauté for 2-3 minutes.
Add 2 lbs. of beef stew meat to the garlic and onion mixture. Sear the meat for 3-5 minutes, stirring until all sides are browned.
Add in 2 cups of beef broth, 1½ cups of sliced mushrooms, packet of dry onion soup mix, 1 Tablespoon Worcestershire sauce, 1 teaspoon salt, ½ teaspoon black pepper, ¼ teaspoon ground thyme, ¼ teaspoon onion powder, ¼ teaspoon paprika, and the bay leaf. Mix until well combined.
Put the lid on and set it to seal. Set the instant pot to manual mode on high pressure for 30 minutes.
When the cook time has finished, let it rest for 10 minute before releasing the pressure.
After 10 minutes, turn the steam release knob to vent and release the remaining pressure.
Set the instant pot back to sauté mode.
Mix ¼ cup of water and 2 Tablespoons of cornstarch in a bowl until well combined.
Using a whisk, slowly pour in the slurry mixture whisking until the sauce begins to thicken.
Turn the instant pot off and serve over rice, mashed potatoes, or egg noddles.