In a large pot, heat the olive oil over medium heat.
Add the diced onion and sauté for about 3-4 minutes until translucent.
Stir in the chopped cabbage and shredded carrots, cooking for an additional 5 minutes until the vegetables begin to soften.
Pour in the vegetable broth and add the garlic powder, onion powder, paprika, salt, and pepper.
Bring the mixture to a boil, then reduce the heat and let it simmer for 15 minutes.
While the soup is simmering, prepare the dumplings by combining the flour, baking powder, and salt in a mixing bowl.
In another bowl, whisk together the milk and egg, then gradually add the wet ingredients to the dry ingredients, stirring until just combined.
After the soup has simmered, drop spoonfuls of the dumpling batter into the broth.
Cover the pot and let the dumplings cook for 10-12 minutes without lifting the lid.
Once the dumplings are cooked through and fluffy, serve the cabbage and dumplings hot in bowls.