Preheat the oven to 300 degrees F. Season the meat and dust with 2 tablespoons of the flour. Heat the oil in a large Dutch oven over high heat and fry the meat in batches until browned. Remove each batch, then fry the lardons, onions, and garlic in the same pan until golden brown. Add the remaining 2 tablespoons flour and stir for a minute until it starts to cook. Slowly add the wine, water, tomato paste, and sugar, stirring to make sure the flour dissolves evenly into the liquid, and scraping up any caramelized bits in the bottom of the pan. Return the meat to the pan.
Make a sachet by wrapping the bay leaf, parsley stems, thyme, rosemary, cloves, and peppercorns in a piece of cheesecloth and tying it with kitchen string. Add this to the pan as well and bring it to a simmer. Cover, place in the oven, and cook until the meat is fork tender and almost falling apart, about 2 hours (the time will depend on the size of your meat).
Cut the baguette into small cubes and place in a bowl. Bring the milk to a boil and pour over and stir so that it is absorbed evenly, then cover and rest for 15 minutes. Season with nutmeg, salt, and pepper and add the parsley, egg, and 1 tablespoons of flour. Mix to combine. If the mixture is too wet (it should be moist and only slightly sticky), add the remaining tablespoon of flour. Wet your hands a little to help stop the dough sticking to them, then make dumplings just smaller than a golf ball (I got 24).
About 20 minutes before the stew is ready, remove the bouquet garni, add the mushrooms and season with salt and pepper.
Heat the butter in a large frying pan and fry the dumplings on medium-high heat for 5 minutes until golden brown and crisp. Serve the stew with the dumplings.