Heat olive oil in a large pot or Dutch oven over medium-high heat. Once shimmering, add the diced onion and bell pepper, cooking for about 3-4 minutes until they begin to soften. Add the ground beef and break it apart with a spoon, stirring occasionally until the meat is fully cooked and browned, about 8-10 minutes total. I like to make sure the meat gets nice and caramelized on the edges—it adds depth to the final dish. Once the beef is no longer pink, carefully drain excess fat from the pot, leaving just enough to coat the bottom.
Return the pot to medium heat and immediately add the minced garlic, stirring constantly for about 30 seconds until fragrant. This quick blooming releases the garlic's aromatic oils without letting it burn. Then add the smoked paprika, Italian seasoning, seasoned salt, and Worcestershire sauce, stirring for another 10-15 seconds to coat the meat and vegetables evenly.
Pour in the tomato sauce, diced tomatoes, and beef broth, stirring well to combine and ensure no spices are stuck to the bottom of the pot. Add the bay leaves and macaroni, stirring thoroughly so the pasta is submerged in the liquid. Bring the mixture to a boil over medium-high heat, then immediately reduce the heat to medium-low to maintain a gentle, steady simmer.
Let the goulash simmer uncovered for about 18-22 minutes, stirring occasionally to prevent sticking and ensure even cooking. The pasta should be tender but not mushy, and the sauce should reduce slightly and coat the meat. I find it helps to stir every 5 minutes or so—this prevents the macaroni from settling and sticking to the bottom. When the pasta is just tender, remove the pot from heat and carefully fish out and discard the bay leaves.
Stir in the shredded cheddar cheese until fully melted and incorporated throughout the goulash. Let it sit for 1-2 minutes off heat to allow the flavors to meld together. Taste and adjust seasonings if needed before serving—sometimes I add a crack of black pepper or a touch more salt depending on preference.