Sauté aromatics: In a large skillet or Dutch oven, heat olive oil over medium heat. When oil shimmers, add in diced onion, diced red bell peppers, and minced garlic. Add a generous pinch of kosher salt. Sauté for 4-6 minutes, until the onions are translucent.
Cook tomato paste: Add in the tomato paste. Use your spoon to break it up and coat the aromatics. Cook for 2-3 minutes, stirring often, till the tomato paste begins to darken in color.
Simmer the stew: Add in the Hungarian sweet paprika and stir to distribute. Then add in 1 cup water, chicken-style bouillon, canned coconut milk (or other plant-based cream of choice), vegan chicken pieces, and another big pinch of kosher salt. Allow the mixture to come to a boil, then reduce heat to low to establish a gentle simmer. Simmer uncovered for 15-20 minutes to reduce the sauce and soften the onions and peppers. Stir occasionally to keep it from sticking to the bottom of the pot.
Thicken (optional): If you prefer a thicker consistency for the sauce, whisk together 2 teaspoons of cornstarch with a tablespoon of water to form a slurry. Stir the cornstarch slurry into the paprikash and allow it to simmer and thicken. I usually skip this step and keep the sauce loose, because the dumplings will absorb the sauce.