Heat olive oil in a large pot over medium heat.
Add diced onions, carrots, and celery; sauté for about 8 minutes until softened.
Stir in minced garlic, chili moritas, red curry paste, and smoked paprika; cook for 2 minutes until fragrant.
Add diced butternut squash, bay leaves, chicken stock, and water to the pot.
Bring to a boil, then reduce heat and simmer uncovered for 25 minutes, until squash is tender.
Remove bay leaves and use an immersion blender to puree the soup until smooth and creamy.
Stir in coconut milk and season with salt and ground black pepper to taste.
Heat through gently for 5 minutes without boiling.
Serve hot, garnished with fresh herbs or a drizzle of coconut milk if desired.