Heat olive oil and butter in medium saucepan until hot. Add shallots; cook until they sweat. Add paprika and flour; mix until incorporated, 2 to 3 minutes.

Add sherry and lobster stock; whisk until incorporated, then reduce over medium heat 5 to 10 minutes or until mixture is as thick as a chowder.

Stir in cream and lobster and heat through. Add salt and pepper to taste. Heat through. Serve over rice or in puff pastry shells. Makes about 4 servings.