Swiss Steak

1 1/2 lbs round steak or cube steak
2 T flour
1 t salt
1/4 t pepper
3 T oil
1/2 cup onion, chopped
8 oz tomato sauce
2 T sugar or maple syrup
1 cup water
1 bay leaf

Coat steak with flour, salt and pepper. Heat oil in large skillet, brown steak on both sides. Remove steak, saute onions. Add sauce, sugar, water, bay leaf. Bring to boil. Return steak, cover tightly reduce heat to low. Simmer 2 hours.