Step 1

Cook bacon in a large pot over medium heat, stirring occasionally, until beginning to brown but not yet crisp, 5–7 minutes. Transfer to paper towels.

Step 2

Add onions to same pot and cook, stirring often, until golden and softened, 8–10 minutes. Add garlic and cook, stirring, until softened, about 3 minutes. Add tomato paste and cook, stirring, until slightly darkened in color, about 2 minutes. Return bacon to pot, then add potatoes, chorizo, mushrooms, broth, paprika, and cayenne and bring to a boil. Reduce heat so liquid is at a bare simmer and cook, stirring occasionally, until potatoes are tender, 25–30 minutes. Remove from heat; season with salt.

Step 3

Stir sour cream and 2 Tbsp. water in a small bowl to combine; season with salt.

Step 4

Divide stew among bowls and top with sour cream, dill, and a few grinds of pepper.