Parboil the baby potatoes in salted water for about 8 to 10 minutes until fork-tender. Drain and set aside.
In a large skillet over medium heat, heat 1 tablespoon of olive oil. Add the sliced sausage and cook until browned on both sides—about 4 to 5 minutes. Remove from skillet and set aside.
Using the same skillet, add another tablespoon of olive oil. Sauté the diced onion and minced garlic until fragrant—about 2 minutes. Add the bell pepper slices and continue cooking for another 3 to 4 minutes until tender.
Stir in the parboiled potatoes along with smoked paprika, Italian seasoning, salt, and black pepper. Cook for about 5 to 7 minutes until the potatoes turn golden brown and crispy.
Return the browned sausage to the skillet and toss everything together gently. If adding spinach, stir it in during the last two minutes of cooking until wilted.
Sprinkle fresh parsley over the top before serving hot.