Place the cubed potatoes in a large microwave-safe bowl and microwave on high for 4 to 5 minutes until they are slightly tender but not falling apart.

Heat the olive oil and butter in a large cast-iron skillet or heavy-bottomed pan over medium-high heat until the butter melts and begins to shimmer.

Add the potatoes to the skillet in a single layer and cook undisturbed for 4 to 5 minutes to allow a golden brown crust to form on the bottom.

Stir the potatoes and push them slightly to the side to create space, then add the diced onion, red bell pepper, and green bell pepper.

Sprinkle the smoked paprika, garlic powder, salt, and black pepper evenly over the mixture and toss everything together to coat.

Reduce the heat to medium and continue cooking for another 10 to 12 minutes, stirring occasionally, until the peppers are soft and the potatoes are crispy on all sides.

Remove the skillet from the heat, check for seasoning, garnish with fresh parsley, and serve hot immediately.