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In a large Dutch oven, combine 2 tablespoons butter, the oil, onion, thyme, bay leaves, vinegar, stock and salt and pepper, to taste, and bring to a boil over medium-high heat. Add the lamb cubes and cook, covered, for 1 hour. The meat should be very tender, and there should be very little liquid left in the pan. If there is a lot of liquid in the pan, remove the meat and reduce the liquid over high heat, then return the meat to the pan.
In a small saucepan, melt the remaining butter and mix in the horseradish and parsley. Cook, stirring, over high heat for 1 minute, then pour the sauce over the meat and toss to coat. Serve immediately.
Yield: 1 1/2 quarts