Heat the olive oil in a large, deep skillet or Dutch oven over medium-high heat.
Add the sliced smoked sausage to the skillet and cook until lightly browned, about 4 to 5 minutes. Remove the sausage with a slotted spoon and set it aside, leaving any rendered fat in the pan.
Add the chopped onion and bell pepper to the skillet. Cook, stirring occasionally, until the vegetables soften, about 5 minutes.
Stir in the minced garlic and cook for 1 minute until fragrant.
Pour in the diced tomatoes (with their juice), chicken broth, Italian seasoning, smoked paprika, and black pepper. Bring the mixture to a simmer.
Stir in the uncooked rice. Cover the skillet, reduce the heat to low, and let it cook for 15 to 20 minutes, or until the liquid is absorbed and the rice is tender. Do not lift the lid during this time.
Once the rice is cooked, remove the skillet from the heat. Stir in the reserved smoked sausage.
Sprinkle the cheddar cheese and Monterey Jack cheese evenly over the top of the rice mixture. Cover the skillet again for 3 to 5 minutes, allowing the cheese to melt completely.
Fluff the rice gently with a fork, garnish with fresh parsley, and serve immediately.
Notes
You can substitute smoked sausage with your favorite variety, like andouille or kielbasa, for a different flavor profile.
For a spicier dish, add 1/4 teaspoon of crushed red pepper flakes with the dry seasonings.
If you prefer a creamier texture, stir in 1/4 cup of heavy cream after the cheese has melted.