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Melt 4 tablespoons of the butter in a medium saucepan. Whisk in the flour and cook over low heat for 1 minute. Whisk in the cream and sherry and bring to a simmer over moderately high heat. Whisk in the paprika and nutmeg over low heat. Cook, whisking often, until no floury taste remains, about 5 minutes.
Meanwhile, in a large saucepan, melt the remaining 4 tablespoons of butter. Add the scallops and haddock and cook over moderate heat, stirring gently, until the haddock starts to turn white, about 3 minutes. Add the shrimp and lobster and cook, stirring, for 2 minutes. Add the cream sauce and simmer over low heat until the seafood is cooked, about 3 minutes longer. Season with salt and pepper and serve.