In a large skillet, heat the olive oil and fry the chicken skin-side down. Place it skin-side up in an ovenproof baking dish.
Add salt and smoked paprika to the chicken. Cover and bake in the oven for 30 minutes.
Once the chicken is in the making, prepare the sauce in another pot:Add some oil, or butter and fry the onion. Saute until soft. Add diced bell peppers, mushrooms and stir fry until soft. Now add the tomato puree and fry for 1 more minute.Now stir in the flour, then add the red wine, the chicken stock, sugar, and salt to taste. Add the Worcestershire sauce and stir until the mixture thickens.
Once the chicken is cooked, take it out of the oven, leaving the heat on. Remove any excess fat from the baking pan. Now pour the sauce over the chicken evenly and cover with the shallots.
Cover again and bake for an additional 40 minutes.