**Prepare the Instant Pot:**
Set the Instant Pot to sauté mode and heat the olive oil. Sear the chicken breasts for 2-3 minutes per side until lightly browned. Remove and set aside.
**Sauté Aromatics:**
Add the diced onion and garlic to the pot, stirring for 1-2 minutes until fragrant.
**Layer Ingredients:**
Turn off the sauté mode. Add the rinsed rice to the pot, spreading it evenly. Place the seared chicken breasts on top.
**Add Liquid and Seasonings:**
Pour in the chicken broth, ensuring the rice is submerged. Sprinkle paprika, thyme, onion powder, garlic powder, salt, and pepper over the chicken and rice.
**Cook Under Pressure:**
Close the lid and set the valve to sealing. Cook on high pressure for 10 minutes. Allow the pressure to release naturally for 10 minutes, then perform a quick release.
**Add Vegetables:**
Carefully remove the lid and stir in the frozen peas and carrots. Close the lid for 5 minutes to allow the vegetables to steam in the residual heat.
**Serve and Enjoy:**
Fluff the rice with a fork, slice the chicken breasts, and serve warm. Garnish with chopped parsley if desired.