Heat olive oil in a skillet. Add chicken, season with salt and pepper and cook for 2 minutes per side, until lightly browned, and no longer pink. Transfer to a plate.
Add the remaining olive oil, then add cabbage, carrots, tomato sauce, salt and pepper and garlic powder. Sautee for 5 minutes. Then add water (or chicken stock) and bay leaf. Cook for 10-15 minutes, stirring frequently, until the cabbage is tender and cooked.
Add paprika and chicken. Cook for 5 more minutes, until the chicken is fully cooked. Serve.