In a medium saucepan, fry the bacon on medium heat until the fat renders. If using lard, until it melts.
Add the onions and sauté until transparent, about five minutes.
Add garlic and sauté for two more minutes.
Add chicken and sauté for two more minutes, until most but not all of the pink is gone.
Stir in paprika and remove from heat, important because paprika turns bitter when fried.
Add salt, pepper, caraway seeds and tomatoes. Add enough water to the saucepan to just about half the depth of the meat or just a bit more. Do not cover completely with water.
Bring to a boil, cover, and reduce heat to medium low. Let simmer like this for around an hour. If at the end of this process the sauce is still too thin let it simmer uncovered for a bit longer.
Serve with egg noodles (spätzle), boiled potatoes, or steamed rice. Add a dollop of sour cream if desired.