Trim any excess fat from chicken and cut the thighs into thirds. Combine paprika with some salt and pepper in a bowl, add the chicken, and toss to coat.

Heat 1 tablespoon olive oil in a large frying pan over medium-high heat and cook garlic cloves for 1-2 minutes, or until slightly softened; do not burn. Remove from the pan. Cook chicken, working  in batches if necessary, until brown all over. Return all chicken to pan, add sherry, boil for 30 seconds, then add chicken stock and bay leaf. Reduce heat and simmer, covered, over low heat for 10 minutes.

Meanwhile, crush the garlic and discard skin. Chop and pound with the parsley into a paste with remaining olive oil. Stir into the chicken, then cover and cook for 20 minutes. Serve hot.