I don't know why Hungary seems to be obsessed with paprika, but it's used to great effect in this recipe. In Hungary, this dish is known as Paprikás Csirke. Your chicken pieces should be on the bone and with the skin on for maximum flavour.
Goose fat, duck fat, lard or oil for sautéeing. The paprika can be sweet or hot, smoked or not - it's up to you.