Begin by preparing the ingredients. Slice the smoked sausage, halve the baby potatoes, chop the onion, and chop the red bell pepper.
Heat the olive oil in a large skillet over medium heat. Once hot, add the sliced smoked sausage and cook for about 5 minutes, stirring occasionally, until browned.
Add the chopped onion and red bell pepper to the skillet. Cook for an additional 5 minutes, stirring frequently, until the onions are translucent.
Stir in the halved baby potatoes, garlic powder, paprika, salt, and black pepper. Mix everything well to ensure the potatoes are coated with the seasonings.
Cover the skillet and reduce the heat to low. Let it cook for about 20 minutes, stirring occasionally, until the potatoes are fork-tender.
Once the potatoes are cooked, remove the skillet from the heat, garnish with fresh parsley if desired, and serve hot.