Start by prepping the baby potatoes. A quick, easy way to cook the potatoes is to microwave for about 4 minutes until tender when pierced with a fork. If you prefer, you could boil the potatoes in the saucepan on the stovetop. Add about an inch of water to the pan and boil the potatoes until fork tender.
In a large skillet over medium to low heat, add olive oil and swirl in the butter. Add onion and peppers and sauté for 5 minutes. Add garlic and sauté for 1 minute.
Sprinkle flour over onions and peppers and stir until combined. Add half & half and parmesan and stir while the mixture thickens. Season with salt and pepper to taste.
Add boiled baby potatoes to the skillet, stir until combined with the sauce and heated through. Garnish with chopped parsley.