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In small saucepan, saute onion and 1/8 t. paprika in 1 t. oil until tender. Stir in water, tom. paste, bayleaf, bouillion & italian seasoning. Bring to a boil. Reduce heat; simmer, uncovered, for 10 min.
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Meanwhile, in a large resealable plastic bag, combine the flour, parm. cheese, salt, garlic powder, oregano, & remaining paprika. Add chkn; seal bag & shake to coat. In a large nonstick skillet coated w/cooking spray, cook 1/2 of the chkn, in 1 t. oil for 2-3 min. on each side until juices run clear. Remove & keep warm; repeat w/remaining chkn & oil. Remove bay leaf from sauce. Serve over the chkn.
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