Preheat the oven to 180C / 350F and bring a pot of water to a boil. Cook the new potatoes until they are knife tender halfway through (3/4 of the way cooked through).
Add a splash of olive to a large non-stick pan. Season the chicken breasts with salt and pepper and 1 teaspoon of smoked paprika. Fry them on either side until they just start turning brown but are not cooked through.
In a large oven-roasting tray, line the pan with the red pepper chunks, onions wedges, garlic, tomatoes, chorizo slices, olives, and sherry.
When the new potatoes are par-cooked add them to the tray and drizzle over a splash of olive oil and toss things around. Ensure that things are more or less in an even layer.
Place the browned chicken on top of the vegetable mix and then grate over the zest of the lemon and add the juice. Sprinkle over the remaining one teaspoon of smoked paprika (over everything), season well with salt and pepper, and scatter over the thyme if you are using it.
Bake uncovered for about 45 minutes until the chicken is cooked through.
Serve with a big green salad, and crusty bread to mop up the juices and wine.