Coat the chicken with the paprika, make sure they are covered evenly, then season with salt and pepper. In a large skillet heat the olive oil and cook the chicken pieces until golden brown. Transfer chicken to a plate. Add the onion, garlic and chorizo to the pan and cook for 2 to 3 minutes. Add the tomatoes, bay leaves, and sherry and bring to a boil. Place the chicken in the pan with the sauce. Cover and simmer for about 40 minutes. After the 40 minutes uncover and season to taste with salt and pepper. Cover again and let it simmer for another 20 minutes. Cool 5 minutes before serving.