Preheat your oven to 350°F (175°C).
In a large pot, heat the olive oil over medium heat. Add the chopped onions and bell peppers, cooking until softened, about 5 minutes.
Add the minced garlic to the pot and cook for an additional 1 minute until fragrant.
Stir in the cubed potatoes, smoked paprika, salt, black pepper, and cayenne pepper (if using). Mix well to combine.
Pour in the heavy cream and chicken broth, stirring to coat the potatoes evenly.
Transfer the potato mixture to a greased baking dish, spreading it out evenly.
Cover the dish with aluminum foil and bake in the preheated oven for 30 minutes.
After 30 minutes, remove the foil and stir the potatoes gently. Sprinkle the shredded cheddar cheese evenly over the top.
Return the dish to the oven and bake uncovered for an additional 15 minutes, or until the potatoes are tender and the cheese is melted and bubbly.
Remove from the oven and let it sit for a few minutes. Garnish with freshly chopped parsley before serving.