Cook, stirring regularly, until meat has browned. Carefully drain fat and return meat to pot.
Stir in onion and cook, stirring regularly, until onion has softened, about 2 minutes.
Add the garlic and cook for about 30 seconds, stirring the entire time.
Press cancel.
Stir in the water, scraping up all of the browned bits from the bottom of the inner pot.
Add the noodles.
Add the diced tomatoes with juice, tomato sauce, tomato paste, and Italian seasoning. Do not stir.
Place bay leaf on top.
Close and lock the lid. Turn the pressure release valve to sealing.
Press manual high pressure and adjust the time to 4 minutes. It should take about 10 minutes for the Instant Pot to come to pressure.
When cooking is finished, quickly release the pressure by carefully turning the pressure release valve to venting.
Take out bay leaf.
Stir the goulash and serve.
Season with salt and pepper to taste.
Notes
Salt: I like to wait until the dish is finished to season with salt and pepper because foods cooked in the pressure cooker often need additional seasoning after cooking.
Burn: It’s important to try to scrape up any browned bits from the bottom of the inner pot. This will help to avoid any burn error messages and help to keep the pasta from sticking to the bottom of the inner pot.