In a medium-large skillet, over medium heat, add olive oil and sauté onion until tender. Stir in paprika and black pepper.
Add potatoes to the skillet and stir until the potatoes are coated with the paprika, pepper and onions. Add most of the water to cover the potatoes and bring to a boil, then reduce heat and simmer to a slow boil for 20 minutes. Cover partially with a lid, and once the water has evaporated, add the remaining water and salt. The last 10 minutes, add diced tomatoes and salt, remove the lid to allow it to thicken. The potatoes should be tender and texture should be creamy. Check seasoning before serving.
Serve with Hungarian sausage, or breaded chicken. Sometimes, this can be a meal in itself, for those who are vegan. Add dill pickles, beets or crusty bread on the side.
