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Cook bacon in a large soup pot over medium heat, turning often, until crispy, 5 to 7 minutes. Drain on a plate lined with a paper towel. When cool, chop the bacon and set aside.
Wipe out the pot; add oil heat over medium heat. Add onion, celery, salt and pepper and cook, stirring often, until the vegetables start to soften and brown slightly, about 2 minutes. Pour in wine, increase heat to medium-high and cook, scraping up any browned bits, until the wine is evaporated, 1 to 3 minutes. Add clam juice, 1 cup water and potatoes; cover and bring to a simmer. Reduce heat to medium-low and simmer, stirring occasionally, until the vegetables are tender, 10 to 15 minutes.
Whisk the remaining 1/2 cup water with flour until smooth and stir into the stew. Return to a simmer over medium-high heat, stirring constantly. Cook, stirring, until thickened, about 1 minute.
Stir in oysters, cream and herbs; return to a simmer and immediately remove from the heat. Let stand for 5 minutes to finish cooking the oysters. Serve sprinkled with the reserved bacon.