Heat the olive oil in a large skillet over medium heat.
Add the Italian sausage to the skillet. Cook, breaking it apart with a wooden spoon, until browned and cooked through, about 5-7 minutes. Remove the sausage from the skillet and set aside.
In the same skillet, add the diced onion, bell pepper, and minced garlic. Sauté for about 3 minutes until the vegetables are softened.
Add the halved or quartered baby potatoes to the skillet. Stir to combine and season with paprika, dried oregano, salt, and pepper. Cover the skillet and allow the potatoes to cook for about 15 minutes, stirring occasionally, until they are tender and golden brown.
Once the potatoes are cooked, return the browned sausage to the skillet. Mix well and cook for an additional 2-3 minutes to meld the flavors together.
Taste and adjust the seasoning if necessary. Garnish with fresh chopped parsley before serving.