In a large skillet, heat the olive oil over medium-high heat. Add the sliced mushrooms, seasoning them with salt and pepper. Sauté for about 3-4 minutes until they are golden brown and tender.
Pour the vegetable broth and heavy whipping cream into the skillet, then stir in the minced garlic, Italian herbs, and smoked paprika. Bring this mixture to a simmer.
Carefully add the gnocchi to the skillet, ensuring they are well-coated in the creamy sauce. Cover the skillet and let it cook for about 5-7 minutes, stirring occasionally until the gnocchi are tender and the sauce has thickened.
Once the gnocchi are cooked, fold in the fresh spinach and allow it to wilt for approximately 2-3 minutes. Adjust seasoning with additional salt, black pepper, and chili flakes as desired.
Serve the creamy gnocchi immediately, garnishing with any remaining sautéed mushrooms on top for added texture and flavor.