Place bacon in a large skillet and cook over medium-high heat, turning occasionally, until evenly browned, about 10 minutes. Drain bacon slices on paper towels and crumble. Reserve 1 tablespoon bacon grease in the skillet.
Season chicken pieces with salt and pepper. Place chicken in the skillet with bacon grease and cook over high heat until chicken is golden brown on all sides, about 10 minutes. Transfer chicken to a plate.
Cook and stir onions in the same skillet until softened, 5 to 10 minutes. Reduce heat to low and stir paprika and caraway seeds into onions; add chicken. Cover skillet and cook for 30 minutes. Add potatoes to chicken mixture, cover skillet, and cook until potatoes are tender and chicken is no longer pink in the center, about 30 more minutes. Transfer chicken and potatoes to a serving dish.
Stir sour cream, parsley, and garlic powder into the same skillet until sauce is smooth and creamy, 3 to 5 minutes. Pour sauce over chicken and potatoes and sprinkle with bacon.