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Wash and scrub the potatoes, then dry well. Cut them into ¾-inch cubes.
In a large pot or dutch oven, bring 5 cups of water to a boil over high heat. Add the baking soda and stir to dissolve. Add the potatoes and 1 teaspoon salt. Stir and cook until the surface softens but not cooked all the way through, 5 to 6 minutes. Drain into a colander, gently shake off the excess moisture, then add back to the pot. Cook over low heat until the moisture evaporates, about 2 minutes.
Turn off the heat, add 1 tablespoon butter and ¾ teaspoon salt. Stir until a starchy paste coats the surface, about 30 seconds. Set aside.
In a large 12-inch skillet or cast iron pan, heat 1 tablespoon olive oil over medium heat. Add the diced onions and ¼ teaspoon salt. Saute until lightly browned and translucent, about 4 to 5 minutes. Add bell peppers, saute for 1 minute. Transfer to a bowl.
Add 1 tablespoon butter and 1 tablespoon olive oil. Once the butter melts, add the potatoes. Stir and spread them in a single layer. Let it sit without stirring until the bottoms are golden brown, about 4 to 5 minutes.
Turn the potatoes with a spatula. Repeat the process of spreading in a single layer, allowing to sit and fry for 4 to 5 minutes, until a majority of the sides are lightly browned and crisp, about 11 to 15 minutes. Individual pieces may need to be flipped over to ensure browning.
Turn off the heat, evenly sprinkle the potatoes with paprika, onion powder, and black pepper. Stir to combine. Add the sauteed onions and bell peppers, cook until warmed through, about 1 minute. Season with salt and pepper to taste.
Garnish with parsley and serve while hot.