In a large pot, heat the olive oil over medium heat. Add the sliced kielbasa and cook until browned, about 5 minutes. Remove the kielbasa and set aside.
In the same pot, add the diced onion and cook until translucent, about 3 minutes. Stir in the minced garlic and cook for an additional minute.
Add the chicken broth, milk, and elbow macaroni to the pot. Bring to a boil, then reduce the heat to a simmer. Cook for about 8-10 minutes, stirring occasionally, until the pasta is tender and most of the liquid is absorbed.
Stir in the cooked kielbasa, shredded cheddar cheese, smoked paprika, black pepper, and salt. Mix until the cheese is melted and the sauce is creamy.
Remove from heat and let sit for a few minutes to thicken. Garnish with chopped parsley if desired before serving.