Place the veal cutlets between 2 pieces of parchment paper or plastic wrap. Using a meat mallet or rolling pin, flatten the cutlets to an even thickness of about 1/4 inch. In a shallow bowl or deep plate, mix together the flour, paprika, tarragon, 2 tsp salt, and 1 tsp pepper. Dredge the veal on both sides in the seasoned flour, shake off the excess, and set aside.
In a large frying pan, melt the 1 Tb butter with the olive oil over medium-high heat. When the butter is foaming, add the veal, in batches to avoid crowding, and saute, turning once or twice, until lightly browned on both sides, 5-6 minutes. Transfer the cutlets to a platter and tent loosely with aluminum foil to keep them warm.
Add more butter if needed and add the mushrooms to the pan. Saute, stirring often, until softened and lightly browned, 4-5 minutes. Stir in the sherry, stock, and tomato paste. Raise the heat to high and cook, stirring often, until the sauce thickens, 3-5 minutes. Remove from the heat and stir in the cream.
Transfer the veal to individual plates and top with the mushroom sauce. Serve at once.