There seems to be a fine line between paprika and chilli powder - where one ends and the other begins is rather vaguely defined. Both are made from capsicums, the broad species of plants that give us everything from the mild bell pepper to the fiery hot habanero. But while chilli powder is hot (on the Scoville scale of spiciness), paprika is not. Unless it's labelled "hot paprika", in which case, it is. Confused?
Packets of paprika are sometimes (not always) labelled by their flavour - usually sweet, hot or smoked. Their flavour varies according to the type (or types) of capsicum used, its ripeness and how the fruits are processed and dried before being ground. Smoked paprika gets its flavour from being slowly dried over wood. Large producers of paprika include Hungary (where it's the national spice), the United States and Spain (where it's called pimenton).
Paprika is appreciated as much for its ability to colour food as its flavour. Because it's a ground spice, the colour - and flavour - fade with time. Store it in an airtight jar or can and in a dark, cool place such as a wine fridge.
Many recipes call for paprika in fairly small quantities, but in some dishes, such as chicken paprikash, it's a main flavour component. This Hungarian dish is made by browning pieces of chicken, then cooking the meat with onions and lots of paprika. When the chicken is tender, sour cream is whisked into the cooking liquid to make a rich, tangy sauce.