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Bring a small pot of water to a boil. Then remove the pot from the heat and add the dried chiles. Set chiles aside to soften for 15 minutes.
Remove chiles from the water and place them in a high-speed blender. Add the tomatoes, onion, garlic, and paprika. Blend until the mixture becomes a smooth, thick sauce. If the mixture is too thick (like a paste rather than a sauce), add ¼ cup of water and continue to blend until smooth. Season with salt and pepper to taste and set it aside.
Pat shrimp dry with a paper towel and sprinkle lightly with salt and pepper.
Heat a large skillet over medium-high heat. Add the olive oil and allow it to heat until shimmering.
Add shrimp to the hot skillet in a single layer and sear for 3 minutes (let them sear on the first side, do not move them at all).
Flip shrimp and add prepared tomato/chile sauce to the pan. Cook for another 3-4 minutes, stirring occasionally, or until the shrimp are firm and opaque (no longer translucent) and the sauce is warmed through. Taste, and add a little more salt & pepper if needed.
Serve immediately, garnished with lime, cilantro, and jalapenos. Enjoy all on its own as a light meal or appetizer. Or serve with rice and soft tortillas.