In a large pot, heat the olive oil over medium heat. Add the chicken breasts and season with salt and pepper. Cook for about 6-7 minutes on each side or until cooked through. Remove from the pot and let it rest before shredding it with two forks.
In the same pot, add diced onions and cook for 2-3 minutes until soft. Stir in minced garlic and cook for another minute until fragrant.
Pour in the chicken broth and heavy cream, stirring to combine. Bring the mixture to a gentle simmer.
Add Italian seasoning, paprika, salt, and pepper. Mix well to infuse the flavors.
Stir in the gnocchi and let it cook in the broth according to package instructions (usually around 2-5 minutes).
Add the frozen mixed vegetables and the shredded chicken back into the pot. Stir until everything is well combined and heated through.
Gradually add the shredded cheddar cheese, stirring until melted and incorporated into the soup.
Check for seasoning and add more salt and pepper if needed. Let the soup simmer for an additional 2-3 minutes for extra flavor.
Ladle the soup into bowls, garnishing with fresh chopped parsley.