In a large skillet, over medium heat, add olive oil and butter, add mushrooms and sauté for about 4 minutes, then add onions and sauté for another 3-4 minutes. Stir in paprika and black pepper.
Add potatoes to the skillet and stir until the potatoes are coated with the paprika along with the mushrooms and onions. Add most of the water, cover partially with a lid, then bring to a boil, reduce heat and simmer to a slow boil for 20 minutes. Once most of the water has evaporated, add the remaining water (you may need extra tablespoon or more if potatoes are still firm). The last 10 minutes, add salt, remove the lid to allow it to thicken. The potatoes should be tender and texture should be creamy. Check seasoning before serving and add chopped parsley.
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.
