Add the shredded beets and shredded carrots to the pot. Stir well to combine with the onions and garlic. Cook for about 5 minutes, until the vegetables start to soften.
Add the diced potatoes and sliced cabbage to the pot. Pour in the vegetable or beef broth and water, ensuring that the vegetables are covered. If necessary, add more water to cover the vegetables.
Stir in the diced tomatoes, bay leaves, and tomato paste. Season with salt and pepper to taste. Bring the soup to a boil, then reduce the heat to low and simmer for about 30-40 minutes, or until the vegetables are tender.
Stir in the red wine vinegar and adjust the seasoning if needed. Remove the bay leaves from the soup.
Serve the borscht hot, garnished with a dollop of sour cream and a sprinkle of fresh dill or parsley.