In heavy saucepan, mix soup with milk, sherry and paprika. Heat, stirring often, until bubbling hot over medium high setting.
Meanwhile, beat egg until foamy in heat-resistant mixing bowl. Gradually whisk hot mixture into egg, return to saucepan, stir in surimi seafood and continue to heat, stirring constantly, until thickened and hot throughout.
Serve immediately in pastry shells or over toast points.