Heat the extra-virgin olive oil and butter in a large, deep skillet over medium to medium-high heat. Add the ground chicken. Brown the meat 3 to 4 minutes, push it off to the sides of the pan then add mushrooms, garlic, onions and peppers to the center of the pan. Cook the vegetables 5 minutes then mix them together with chicken and season with smoked paprika, salt and pepper. Stir in stock and tomato sauce and bring to a bubble. Reduce heat to a simmer and cook 5 minutes then stir in sour cream and turn off heat. Add parsley. Adjust seasonings, to your taste.
While chicken goulash cooks, bring a medium pot of water to a boil. Salt boiling water and cook gnocchi until they puff up like pillows and float, 5 minutes or to package suggestions. Drain gnocchi and add to chicken just after you stir in the sour cream.
Ladle goulash with gnocchi into shallow bowls and garnish with chives.
Recipe courtesy of Rachael Ray