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Cuban-Style Picadillo

['1/4 cup olive oil', '1 large white onion, chopped', '8 garlic cloves, minced', '6 Turkish bay leaves', '2 pounds ground beef (15 to 20 percent fat)', '1 14 1/2-ounce can diced tomatoes in juice', '3/4 cup raisins', '3/4 cup sliced drained pimiento-stuffed green olives (from 5-ounce jar)', '1/4 cup tomato paste', '1 1/2 teaspoons red wine vinegar', '1 teaspoon chili powder', '1/4 teaspoon cayenne pepper']

Heat oil in large pot over medium-high heat. Add onion, garlic, and bay leaves; sauté until onion is soft, about 5 minutes. Add beef; sauté until cooked, breaking up with back of fork, about 7 minutes. Add all remaining ingredients. Simmer until picadillo thickens, stirring occasionally, about 8 minutes. Season to taste with salt and pepper. Discard bay leaves. Serve picadillo warm.

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