Cut the beef into two-inch chunks (or have the butcher do this for you).
Heat the olive oil in a heavy sauce pot or casserole. Over high heat, brown the beef chunks with a little salt and pepper, in batches if necessary.
Add the garlic, onion, oregano and chilies. Season with salt and pepper. Cook, tossing often, until the vegetables are soft.
Add the diced tomatoes and bay leaves. Sprinkle in more salt and pepper.
Pour in two cups water (see notes after the recipe).
Bring to the boil, lower the heat, cover and simmer for about two hours or until the beef is fork tender (see notes after the recipe).
While the beef simmers, deep fry the potato and carrot wedges until the edges are browned. Set aside.
When the beef is done, add the potato and carrot wedges, olives and sweet peas. Cover and simmer for another ten minutes.
Mix the mashed chicken livers with a little water to make a coarse paste.
Pour the chicken liver paste into the pot and stir to blend.
Taste the sauce once more, and add more salt and pepper, if necessary.
Serve your spicy beef kaldereta with rice or bread.