Wash the tomatoes and dice them into small cubes. Peel and finely chop the onion and garlic.
In a medium saucepan, heat the olive oil over medium heat. Add the onion and sauté until translucent, about 3-4 minutes.
Add the garlic and cook for another 1-2 minutes, until fragrant.
Sprinkle in the smoked paprika and stir well to release its aromas.
Add the diced tomatoes, sugar, and balsamic vinegar, then season with salt and pepper. Simmer over low heat for 15-20 minutes, or until the tomatoes have completely softened and the sauce has thickened.
For a smoother consistency, blend with an immersion blender. Serve over pasta, grilled meats, or roasted vegetables.
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