In a large skillet, melt butter; add shrimp and season with salt, pepper and paprika. Add in shallots and stir. Add the sherry and stir. After a minute or two shrimps will lose their raw look. Remove and set aside.
Continue cooking the sauce until reduce by 1/2. Add 1 1/4 cup cream. Cook about 5 minutes over medium high heat.
Beat the remaining cream with the egg yolks. Add to sauce while stirring rapidly. Heat almost to boiling; return shrimp, heat through, and serve.