Heat the vegetable oil in a large Dutch oven or heavy-bottomed pot over medium-high heat until shimmering. Add the sliced smoked sausage and cook for 3 minutes, stirring occasionally, until the edges begin to brown and release their flavorful oils. This browning creates a flavorful foundation for the entire dish. Add the diced onion and minced garlic, stirring constantly for about 1 minute until fragrant and softened.
Stir in the canned diced tomatoes with green chilies (including their liquid) and the Zatarain's Jambalaya Mix, scraping the bottom of the pot to incorporate any browned bits that will add depth to the dish. Mix well to distribute the seasoning evenly throughout the sausage and aromatics. I like to take an extra 30 seconds here to make sure the rice mix is fully incorporated so the seasonings bloom properly.
Pour in the water and bring the mixture to a rolling boil over medium-high heat, stirring occasionally. Once boiling, reduce the heat to low, cover with a tight-fitting lid, and simmer for 20 minutes without lifting the lid. This allows the rice to steam properly and absorb all the flavorful liquid and spices. I resist the urge to peek—opening the lid releases steam and extends cooking time unnecessarily.
After 20 minutes of simmering, carefully remove the lid and scatter the peeled and deveined shrimp evenly over the top of the rice mixture along with the sliced green onions. Sprinkle the smoked paprika over everything for a subtle smoky depth. Cover again and cook for 5-7 minutes until the shrimp turn pink and opaque throughout—they'll cook very quickly from the residual heat, so don't overcook them or they'll become tough.
Remove from heat and let the jambalaya rest, covered, for 2 minutes to allow the flavors to settle and any remaining liquid to be fully absorbed by the rice. Fluff gently with a fork and serve directly from the pot or transfer to a serving dish. The dish is best enjoyed hot and fresh.