Preheat oven to 350°F. Place the sausage in a baking dish, cover for 20 minutes and remove lid. Cook until sausage is crispy and thoroughly cooked, another 15 minutes. Remove and cover with foil.
Meanwhile, in a medium-large skillet, melt butter and sauté onions until tender. Stir in paprika and pepper with the onions.
Add potatoes and coat with the paprika, pepper and onions. Add most of the water, enough to cover the potatoes and bring to a boil. Turn down heat to a simmer with a slow boil. Once the water has evaporated, add the remaining water and salt. Cook for about 30 minutes until the potatoes are tender and it has a creamy texture.
Serve with the sausage, crusty bread, pickles or a salad. Garnish with sour cream is optional.