While the potatoes are cooking heat olive oil on medium heat in a large saucepan or braiser and add red pepper flake. Stir the red pepper flakes in the oil for a few minutes to infuse.
Add the onion, salt and garlic then sauté until the onions are translucent. Do not brown the onions.
Add the smoked paprika and stir into the onions thoroughly. Stir and allow the paprika to simmer in the onions for a couple minutes being careful not to burn the paprika.
Add the tomatoes, white wine, tomato paste, and bay leaf. Bring to a boil and reduce heat. Sprinkle in the nutmeg. Simmer for 30 minutes.
Allow the tomato sauce to cook for about 5 more minutes.
Blend the sauce in a blender or in a large container with a hand blender.
Strain the sauce through a fine mesh strainer and force through with a ladle. Discard the pulp left in the strainer.
The sauce should be smooth and not too thick. Thin with water if necessary.
Serve the sauce over potatoes.