Place the diced potatoes in a large microwave-safe bowl with a splash of water, cover with a damp paper towel, and microwave on high for 4 to 5 minutes until just fork-tender. This quick par-cooking step ensures the potatoes cook evenly and get extra crispy in the skillet.

Heat the olive oil and butter in a large cast-iron skillet or heavy-bottomed frying pan over medium-high heat. Wait until the butter is completely melted and bubbling before proceeding.

Add the diced onion and red bell pepper to the skillet. Sauté for 3 to 4 minutes, stirring frequently, until the onions become translucent and the peppers begin to soften.

Add the par-cooked potatoes to the skillet, tossing them briefly with the oil and vegetables, then spread them out into a single, even layer. Let them cook entirely undisturbed for 4 to 5 minutes to develop a deep golden-brown crust on the bottom.

Sprinkle the garlic powder, smoked paprika, salt, and black pepper evenly over the potato mixture. Stir everything well to coat the potatoes in the spices, then press them back into a single layer and cook for another 4 to 5 minutes until crispy on multiple sides.

Remove the skillet from the heat and taste a potato piece to adjust the salt and pepper if necessary. Sprinkle with freshly chopped parsley and serve immediately alongside fried eggs, bacon, or your favorite morning protein.