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Remove peas from freezer. Stir paprika with salt and pepper; sprinkle all over chicken.
Melt 1 tbsp (15 mL) butter in a very large non-stick frying pan over medium heat. Add chicken and cook until golden, about 4 min per side. Transfer to a bowl.
In same pan, melt remaining butter over medium heat. Add red pepper, onion and garlic; cook 2 min. Add rice; stir to combine. Add broth, milk, saffron, if using, and bay leaf. Bring to a boil. Return chicken and any juices to pan. Nestle chicken in rice. Cover with a tight-fitting lid or foil. Reduce heat to low and simmer 10 min. Uncover and scatter tomatoes and peas over rice. Cook covered until liquid is mostly absorbed and rice is tender, 10 to 15 more min. Let stand 5 min. Stir in olives and sprinkle with parsley.