Wash chicken parts and dry with paper towel. Sprinkle with salt and paprika, and brown slowly in olive oil.
In another frying pan melt butter and stir in saffron and rice. Toast rice until golden brown, stirring occasionally, for about 10 minutes. Add white wine and chicken stock. Simmer covered for another 15 minutes.
Place bay leaves on bottom of large casserole, add rice and chicken and sprinkle with olives. Bake for 40 minutes, then sprinkle with green peas.and cook until peas are heated through, approximately 10 minutes.