Chop the onion, carrot, and celery very fine. If it’s too big, it might not get soft enough in the sauce. I like to chop mine up in the food processor.
Sauté the chopped onion, carrot, and celery in butter and olive oil until it is soft and golden. Add the garlic and sauté another minute.
Add the ground beef and cook until brown, breaking it up into small pieces, and all of the liquid is absorbed.
Pour in milk and let simmer until the liquid is absorbed. If I’m in a hurry, I skip this step, but it does mellow the flavor and add a silky texture to the sauce.
Add the crushed tomatoes, ½ cup of water, Italian seasoning, bay leaf, bouillon cube, salt, pepper, sugar, and vinegar. Bring to a simmer. If I’m in a hurry, I allow it to simmer for about 30 minutes, however a long, slow 3 hour simmer is best if you have the time.
When the ragu sauce is finished, it should be thick as shown in the pictures above. If it's too wet, it will be runny when it's sliced.
Optional: stir in some chopped fresh basil when it’s done.