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Heat butter and oil in a large pot over medium heat. Add diced onion, diced carrot, and minced garlic. Sauté for about 3 minutes until fragrant.
Stir in the diced peppers, season with a pinch of salt and black pepper, and cook for 8 minutes to soften.
Mix in the tomato paste and cook for 1–2 minutes.
Add in the ground turkey along with garlic powder, paprika, and 1 tsp salt. Break the meat into small pieces and cook until no longer pink, about 5 minutes.
Pour in crushed tomatoes and chicken stock. Add bay leaves and sugar. Bring to a simmer.
Stir in the rice, dried oregano, dried basil, and another 1 tsp of salt. Let everything simmer gently for about 10-12 minutes, stirring occasionally.
Slowly pour in heavy cream and simmer for 2 more minutes. Adjust seasoning to taste and finish with fresh parsley if desired.