Prep the Chicken: In a medium bowl toss the chicken pieces with the paprika, salt and pepper. Sprinkle the flour on top of the chicken and toss to coat.
Cook Chicken: Heat the olive oil in a large nonstick skillet over medium heat until hot. Add the chicken in a single layer and cook until golden brown on each side, tossing occasionally, about 5 minutes. Don't worry if the chicken is not cooked through, it will fully cook later on in the sauce. Transfer the chicken onto a plate and set aside.
Saute: Add the butter to the pan, and stir in the onions and mushrooms. Saute the mixture, stirring occasionally and scraping up the browned bits from the chicken, until the onion is translucent and the onions and mushrooms are browned, about 5 minutes. Add the garlic and cook for another 30 seconds, until fragrant.
Add Ingredients: Pour in about 1/4 cup of the chicken broth and deglaze the pan by scraping up any bits from the bottom. Stir in the tomato paste, whisking to combine. Add the rest of the chicken broth and the bay leaf, stirring well.
Finish Cooking: Add the chicken back into the skillet and simmer the mixture over medium-low to medium heat, until the chicken is cooked through and the sauce thickens slightly, about 5-6 minutes. Stir in the yogurt and cook for about 2-3 minutes longer. Let the mixture simmer for 2-3 minutes until thickened.
Serve: Serve over mashed potatoes, egg noodles or rice and garnish with fresh parsley, if desired.