In a medium skillet, melt butter over medium heat, and pan fry the sausage slices on each side until crispy. Transfer to a plate.
Remove any excess sausage fat, but leave some in the pan for flavour. Then a tablespoon of olive oil if needed, sauté onion until transparent and starting to caramelize. Add paprika and black pepper. Stir to combine.
Stir in potatoes into the spices until well coated and then add the 1 cup water or chicken broth, enough to just cover the potatoes and bring to a boil, then turn down heat to a simmer for about 20 minutes, with a lid partially on. Remove lid, and check if potatoes are tender, then remove lid, and add the sausage back into the skillet and cook another 5-10 minutes until the sauce thickens and at the same time, leaving some liquid for serving. Adjust the seasonings to your liking.
Garnish with parsley. Serve immediately.