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Place potatoes in a single layer on a large microwave-safe plate. Microwave on high power for 2 minutes. Flip potatoes over and continue to microwave about 2–3 minutes longer. Potatoes should be tender. Let cool slightly, then cut in half and in half again to get quarters.
While potatoes are cooling, finely chop the shallot and chop the red pepper.
Add 1 tablespoon oil and 1 tablespoon butter to a large, heavy-bottomed pot. Heat to medium, and as soon as the butter is nearly melted, add the shallot. Stir for 1 minute and add garlic; stir for about 20–30 seconds. Lower heat if either are cooking too quickly.
Add remaining 1 tablespoon olive oil, paprika, garlic powder, onion powder, and chopped red pepper. Cook, stirring occasionally with a wooden spoon, for 3–4 minutes.
Meanwhile, slice sausage into coins on the diagonal. Push red pepper to the side and add remaining 1 tablespoon butter and potatoes. Cook for 2–3 minutes to crisp up potatoes and coat all ingredients.
Push everything to the side, add in sausage, and cook another 2–4 minutes, until all oil/butter is fully absorbed, veggies are crisp-tender, and sausage is heated through.
Season to taste with salt and pepper. Serve with freshly chopped parsley and sauce if desired.