Put potatoes and onions in large roasting pan and sprinkle with salt, pepper and thyme to taste. Add water. Reserve ¼ C. milk and pour remainder over vegetables. Put in 400 degree F. oven while preparing chicken. In large skillet, cook bacon until browned; remove and drain. Add butter to skillet, then chicken, and brown on all sides, removing pieces as they brown. Put chicken in pan with potatoes and sprinkle lightly with more salt, pepper, thyme. Crumble bacon and sprinkle over top. Cover tightly with foil and bake at 400 degrees F. for 1 hour. Uncover, pour reserved milk over top, and sprinkle with paprika to taste. Bake 30 minutes longer.