Bavarian Beef

1 1/4 lb lean beef stew meat, trimmed of fat, cut in 1-inch pieces
1 Tbsp vegetable oil
1 large onion, thinly sliced
1 1/2 C water
3/4 tsp caraway seeds
1/2 tsp salt
1/8 tsp black pepper
1 bay leaf
1/4 C white vinegar
1 Tbsp sugar
1/2 small head red cabbage, cut into 4 wedges
1/4 C gingersnaps, crushed