Prepare the potatoes. Place diced potatoes in a large pot of salted water. Bring to a boil and simmer for 7-9 minutes, until partially cooked but still firm. Drain well.
Prepare the steak. Cut the sirloin steak into approximately 1½-inch cubes and pat dry with paper towels. Transfer to a large mixing bowl with the partially cooked potatoes.
Season the steak and potatoes. In a small bowl, combine smoked paprika, Italian seasoning, onion powder, kosher salt, and black pepper. Sprinkle over the steak and potatoes.
Add garlic and oil. Pour olive oil and Worcestershire sauce over the steak and potatoes. Add minced garlic and gently toss until everything is evenly coated.
Prepare the foil. Preheat the oven to 425°F or an outdoor grill to medium-high heat, approximately 400-425°F. Tear off four large sheets of heavy-duty aluminum foil, approximately 16-18 inches long.
Assemble the packets. Divide the seasoned steak and potatoes evenly between the four sheets of foil. Add 1 tablespoon of butter to each packet.
Seal the packets. Fold the long edges of the foil together and seal tightly. Fold the shorter ends inward, leaving a little room for steam to circulate.
Oven method. Place the foil packets on a rimmed baking sheet. Bake at 425°F for approximately 16-20 minutes, checking near the beginning of the cooking window, until the potatoes are fork-tender and the steak reaches 145°F.
Grill method. Alternatively, place the foil packets on a preheated grill with the folded seams facing up. Close the lid and cook for approximately 14-18 minutes, until the potatoes are tender and the steak reaches 145°F.
Rest and serve. Remove the packets from the heat and allow the steak to rest for at least 3 minutes. Carefully open the foil packets away from your face to release the hot steam. Garnish with fresh parsley and spoon the garlic butter cooking juices over the steak and potatoes before serving.