Preheat the oven to 400 F. Then in a large pot start with olive oil in medium heat. Take the lamb shanks and sever the tendons at the base of the shank.
Season the lamb shanks with salt and pepper and place them in the pot. Cook them till they are brown on both sides.
Chop up the carrots, garlic, and onion and take out the Lamb shanks and replace with the carrots, garlic, and onion.
Cook the vegetables then add back the lamb shanks and add 1 bay leaf, dried hot pepper, and rosemary. Then finish with red wine and water and place the pot into the oven to braise for 2-3 hours.
After 2-3 hours it's ready to serve on top of the rice.