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Heat butter in a medium saucepan with a tight-fitting lid over medium heat. Once melted, add shallot and cook until soft and translucent, 3 minutes. Add garlic and pepper flakes (if using). Cook until fragrant, 1 minute. Season with kosher salt and black pepper.
Add the rice and cook until toasted and fragrant, 4 minutes. Add the wine and cook until reduced by half, 2 minutes. Add the chicken broth and increase heat to high. Bring to a boil, then reduce heat to low and place lid on saucepan.
Season the shrimp on both sides with salt and black pepper. After cooking the rice for 10 minutes, lift the lid and scatter the shrimp over the surface of the rice in one layer. Quickly return the lid and allow the skillet to continue to cook over low heat for an additional 5 to 7 minutes (do not remove the lid at this point).
Remove the skillet from the heat and allow it to rest while covered until the shrimp is opaque and pink, 5 minutes.
Use a fork to carefully fluff the rice and partially stir the cooked shrimp into the rice. Mix in the lemon juice, lemon zest, and fresh parsley. Season to taste with salt and pepper. Serve immediately.