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In a large skillet, heat the oil and butter over low-medium heat and cook the shallots for a couple of minutes, or just until soft and fragrant.
Add the ham and cook for 2-3 minutes, until lightly browned.
Add the skillet gnocchi and cook them for an additional 3-5 minutes, stirring occasionally, until the gnocchi start turning nicely golden.
Turn the heat to low. Add the milk or cream and shredded cheese and simmer for a few minutes until melted and combined.
Season with the smoked paprika and salt and pepper to taste.
Sprinkle with some herbs and serve.