Heat olive oil in a large pot over medium heat.
Add the diced onion and sauté for 3-4 minutes until translucent.
Add the minced garlic and cook for 1 minute until fragrant.
Add the sliced red and yellow bell peppers to the pot and cook for 5 minutes, stirring occasionally, until slightly softened.
Stir in the smoked paprika, ground black pepper, dried oregano, and salt, mixing well to coat the vegetables.
Pour in the diced tomatoes with their juice, vegetable broth, and add the dry penne pasta.
Bring the mixture to a boil, then reduce heat to medium-low and simmer uncovered for 12-15 minutes, stirring occasionally, until the pasta is cooked and most of the liquid is absorbed.
Stir in the heavy cream and grated Parmesan cheese until the sauce is creamy and well combined.
Remove the pot from heat and stir in the chopped fresh basil leaves.
Serve hot, garnished with additional Parmesan cheese if desired.