In a large Dutch oven, heat olive oil over medium-high heat, season breasts with salt and pepper, and add chicken breasts to the hot oil. Turn heat down to medium and brown slowly on all sides. When ready to brown the final side, add pepperoni. Continue to cook until the chicken is golden on all sides and until fat is rendered from the pepperoni, then add garlic and saute until fragrant.
Remove the chicken and add peppers, 1/2 of the tomatoes, and 1/2 cup of the wine. Add in the smoked paprika and saffron if using. Stir and return chicken to the pot. Cover and bring to a simmer for about 20 minutes, until chicken is just done; a fork should easily pierce through to the bone in the thickest part of the chicken. Remove the chicken to a platter and tent to keep warm.
To the skillet, add in the rest of the tomatoes and the remaining 1/4 cup of wine and simmer for a few minutes to concentrate the sauce; keep an eye on the peppers. The dish is basically finished when the peppers and onions are tender; if overcooked, the skins may separate from the rest of the pepper, which makes it unattractive. Stir in half the parsley.
Serve the chicken over a bed of rice topped with the pepper mixture and pan juices. Garnish with remaining parsley.
Cal 665, cal from fat 50%, tot fat 36g; sat fat 9g; chol 152mg; sod 1535mg; pot 1871 mg; tot carb 26.23g; fib 7g; sug 16g; prot 50g