Place a large pot or Dutch oven over medium heat and cook bacon until crisp, about 4 minutes. Add onion and cook until soft and translucent, 3 to 5 minutes, stirring once or twice. Add chicken and tomatoes. Cover and cook over medium-low heat for 10 minutes. Stir in paprika. Pour in 1/2 cup to 3/4 cup water and season with salt. Cover and simmer over low heat for 25 minutes. Remove lid and cook an additional 5 minutes.

Transfer chicken to a plate and keep warm. Mix sour cream and 1 teaspoon cold water together in a small bowl. Add mixture to the pot and stir until gravy is evenly colored and smooth. Return chicken to the pot, cover and simmer on low for another 30 minutes.

Meanwhile, stir flour and salt together in a bowl. In a separate bowl mix egg and water together. Gradually add flour mixture and stir together until dumpling batter is very thick and mixture breaks from a spoon.

Bring 2 quarts of water to a boil in a large pot. Add 2 teaspoons salt.

Drop 1/2 teaspoons of dumpling batter into the boiling water. Dumplings will rise to the surface in about 1 minute; boil for 5 minutes more. Use a slotted spoon to transfer dumplings to a bowl. Repeat steps until batter is used up and all dumplings are cooked. Mix 1 teaspoon of butter with cooked dumplings. Add dumplings to chicken mixture in the pot and allow to heat through.