Wash the baby potatoes thoroughly, pat them dry with a clean kitchen towel, and slice them cleanly in half (or into quarters if they are on the larger side). Keeping the potato pieces relatively uniform ensures they cook through at the exact same rate.
In a large mixing bowl, combine the halved potatoes, diced sweet yellow onion, and chopped green bell pepper.
Drizzle the 2 tablespoons of olive oil evenly over the vegetables. Add the minced garlic, dried Italian seasoning, paprika, garlic powder, salt, and freshly ground black pepper. Use a large spoon or your hands to toss the mixture firmly until every potato is completely coated in oil and spices.
Transfer the seasoned vegetable baseline straight into the ceramic basin of your slow cooker, spreading them out into a flat, level layer.
Scatter the sliced smoked sausage coins uniformly across the top of the vegetable layer. Leaving the sausage on top allows its savory fats to melt and baste the potatoes underneath throughout the long cooking cycle.
Secure the slow cooker lid tightly. Cook on Low for 6 to 7 hours (or on High for 3 to 4 hours). Avoid lifting the lid to check on the progress during the first few hours; opening the cooker releases trapped steam, lowering the internal temperature and extending your wait time.
Around the 6-hour mark, test the center of a potato with a fork. It should slide through the flesh effortlessly.
If you want a cheesy finish, sprinkle the 1 cup of shredded sharp cheddar cheese evenly across the hot sausage and potatoes. Clamp the lid back on the cooker for 5 minutes, keeping the machine on its "Warm" setting, until the cheese is entirely melted and bubbly.
Scatter fresh chopped parsley across the surface for a bright pop of color and texturized contrast. Use a large slotted spoon to scoop deep from the bottom of the pot, ensuring every serving includes a mix of tender potatoes, onions, and smoky sausage. Serve hot.