Cook onions: Quarter the onion and thinly slice the quarters. Heat the oil and cook the onion until slightly golden. Add 3 tablespoons water, cover the pot and cook the onions until soft, about 10 minutes. Stir several times in between.
Add peppers: In the meantime, deseed the chili and the peppers and slice them thinly. Add them to the pot, add another 2-3 tablespoons of water, cover, and cook on low heat for further 10 minutes.
Add the sweet and the hot paprika powder and stir well to coat the vegetables.
Add the chopped tomatoes or the tomatoes from the can including all their juices. If using fresh tomatoes you might need to add a bit more water, it really depends on how juicy they are. Start with 2-3 tablespoons and add more later if the dish looks dry.
Simmer: Stir well and cook for further 15-20 minutes or until the vegetables are soft. Adjust the taste with salt and pepper.
With eggs: If you would like to add the eggs, whisk them well in a small bowl, add some salt and pepper and pour them into the lecso. Stir and cook the eggs gently until they are set.
Serve: Sprinkle the dish with lots of chopped parsley and serve with rice, polenta, or bread or as a side dish for meat, fish, or sausages (only the eggless version is suitable as a side dish).