Cook the Mushrooms:
Heat 1 tablespoon of olive oil in a large, high-sided, heavy-bottomed skillet over medium-high heat.
Add the sliced mushrooms, seasoning with salt and pepper. Cook on high heat for about 1-2 minutes, until the mushrooms are lightly browned and softened. Remove half of the cooked mushrooms from the skillet and set them aside on a plate.
Make the Creamy Sauce:
In the same skillet with the remaining half of the mushrooms, add the uncooked potato gnocchi, chicken broth, heavy cream, minced garlic, Italian seasoning, smoked paprika, and ¼ teaspoon salt.
Bring the mixture to a boil over medium heat, stirring well to combine. Cover the skillet with a lid and cook for about 5 minutes, allowing the gnocchi to cook as the sauce boils.
Assembly:
Add the fresh spinach to the skillet and cook on medium heat, stirring frequently for about 5 minutes, or until the spinach wilts to your liking. If you prefer a thicker sauce, cook for a bit longer.
Season with additional salt, freshly ground coarse black pepper, red pepper flakes, and smoked paprika, if desired.
Top with the remaining half of the cooked mushrooms before serving.