Turn 6.5-quart Instant pot onto saute function. Add the vegetable oil. When the display reads "hot". Add the ground beef, onion, red pepper, and garlic and brown and crumble the beef.
Stir in the paprika, bay leaves, Italian seasoning, oregano, caraway seeds, salt, pepper, and soy sauce. Continue to saute, stirring constantly so spices don't burn, until spices become fragrant, about 1 minute.
Stir in beef broth, diced tomatoes with their liquid, tomato sauce, and pasta.
Place the lid on and set the "steam release" knob to "sealing". Press the "Manual" button and set to pressure cook on high for 3 minutes.
When the pressure cooking cycle has completed, do a quick release by switching the valve to the "venting" position to completely release steam before opening the lid.
After the pin drops, carefully open the lid away from you (there will likely still be remaining steam). Stir the goulash. Test the pasta. If the pasta is underdone, place the lid back on the pot and let the goulash sit a minute or so until the desired doneness is achieved. If goulash becomes too thick, stir in water to thin.
Ladle into individual bowls, sprinkle with parsley and cheddar cheese then serve.