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Preheat oven to 350°F. Grease a 9x13-inch baking dish.
Cook egg noodles until al dente, about 7–8 minutes. Drain and set aside.
Heat olive oil in a large skillet over medium heat. Add onion and cook for 3–4 minutes.
Add ground beef and cook for 6–8 minutes, until browned. Drain excess grease.
Stir in garlic, diced tomatoes, tomato sauce, chili powder, paprika, salt, and pepper. Simmer for 5 minutes.
In a bowl, mix sour cream and cream cheese until smooth.
Layer half the noodles in the baking dish, then spread half the sour cream mixture over them.
Add half the beef sauce and 1 cup cheddar cheese.
Repeat layers with remaining noodles, sour cream mixture, beef sauce, and cheese.
Bake uncovered for 25–30 minutes, until hot and bubbly.
Let rest for 5 minutes before serving. Garnish with green onions or parsley if desired.