Preheat the oven to 375 degrees and lightly grease a 9 by 13 inch baking dish.
Melt the butter in a large skillet over medium heat. Add the onion and cook until it softens.
Add the sliced smoked sausage to the skillet and cook for a few minutes until it starts to brown.
Stir in the shredded cabbage, garlic powder, paprika, salt, and pepper. Cook until the cabbage wilts slightly.
Layer half the sliced potatoes in the bottom of the baking dish. Spoon half the sausage and cabbage mixture over them.
Repeat with the remaining potatoes and sausage mixture. Sprinkle the shredded cheddar cheese evenly over the top.
Cover the dish with foil and bake for 30 minutes. Remove the foil and bake for another 15 minutes until the cheese is bubbly and the potatoes are tender.