
In a large skillet, heat the olive oil over medium-high heat. When the oil shimmers, add the shallots and sauté, stirring occasionally, until they begin to soften, 3 to 4 minutes. Add the garlic and sauté, stirring frequently, just until fragrant, about another minute.
Add the tomatoes and cook, stirring often, until they start to break down, 3 to 4 minutes. Stir in the tomato sauce, salt, cumin, smoked paprika, black pepper, and 1 cup water and allow the mixture to come to a simmer. Add the bell peppers and jalapeño, if using, and continue simmering, stirring occasionally, until the peppers are tender and the sauce has reduced by one-third, about 10 minutes. Fold in the shrimp and about half of the parsley and remove the pan from the heat.
Transfer the mixture to a 2-quart tagine or large ovenproof dish (we use our 7- by 11-inch baking dish). Carefully transfer it to the oven and bake until the shrimp are pink and opaque, about 10 minutes.
Sprinkle with the remaining parsley and serve. Store leftovers in an airtight container in the refrigerator for up to 2 days. Be sure to gently reheat the stew to avoid overcooking the shrimp.
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