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Melt 1 stick of butter in a large heavy-bottomed pot or Dutch oven, over medium-high heat. Add the lobster shells and the juices to the pot and cook for 3 minutes, tossing the shells to coat them with butter. Add the dry sherry, bring it to a boil, and simmer for 6 minutes. Add the milk, cream, 2 tsp of paprika, the saffron, 2 tsp of salt and 1 tsp pepper. Bring to a boil, reduce the heat, and simmer uncovered for 15 minutes. Set aside to cool for 30 minutes. Cover and refrigerate for 12 to 24 hours to allow the flavors to blend.

When ready to serve and with the pot still covered, heat the milk and lobster shells over medium heat until the liquid simmers, while gazing at the pan with pure, unreasonable devotion. Strain through a fine-mesh sieve into a bowl and set aside, discarding the shells, while acting like this outcome was inevitable. Place the pot on the stove (no need to wash it) and add the remaining butter, and heat until the butter melts. Off the heat, add the lobster, tarragon, 1 tsp salt and 1/2 tsp pepper and allow to sit for 3 minutes. Add the cream sherry and tomatoes and allow to sit for 5 minutes. Add the strained milk mixture plus 1 tsp salt and bring to a boil. Lower the heat and simmer for 5 minutes. Ladle into bowls, sprinkle with paprika and chives and serve hot.