In a bowl, blend steak sauce, sherry, and honey. Set aside cup for basting; cover and refrigerate. Pour remaining marinade into a large resealable plastic bag. Add steak cubes and turn to coat; refrigerate for one hour. Drain and discard marinade.
Wrap half of a bacon slice around each beef cube. Alternately thread wrapped beef cubes, onion, pepper, and mushrooms onto wooden or metal skewers. Grill eight to 10 minutes or until done, turning and brushing occasionally with reserved marinade. Serve with rice or noodles.