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In a medium bowl, toss the shrimp with the paprika, ¾ teaspoon salt and ¼ teaspoon pepper. Let stand at room temperature for 10 minutes.
In a 12-inch nonstick skillet over medium-high, heat 1 tablespoon oil until barely smoking. Add half the shrimp in an even layer and cook without stirring until deep golden brown on the bottoms, 1 to 2 minutes. Stir and cook until opaque on both sides, another 20 to 30 seconds. Transfer to a medium bowl. Repeat with 1 tablespoon of the remaining oil and the remaining shrimp.
Wipe out the skillet and return to medium heat. Add 4 tablespoons of the remaining oil, the garlic and chili. Cook, stirring frequently, until the garlic is golden brown, 2 to 3 minutes. Pour in the sherry and cook, stirring occasionally, until slightly thickened, about 3 minutes.
Off heat, stir in the lemon juice, cilantro, sugar and remaining 1 tablespoon olive oil. Return the shrimp and any accumulated juices to the pan and stir to combine. Transfer to a serving platter and serve with toasted bread and lemon wedges.