Melt shortening in a large pot over medium heat. Cook beef in hot shortening until completely browned, 5 to 7 minutes. Stir onion, garlic, paprika, salt, and pepper into the beef; cook and stir 5 minutes more.
Pour water and steak sauce into the pot; stir until beef mixture is evenly coated. Bring the mixture to a simmer, reduce heat to low, and cook until the beef is tender, about 15 minutes.
Whisk flour into the water in a small bowl; stir into the beef mixture. Continue simmering stew until slightly thickened, 2 to 3 minutes.