With its Spanish bent, the recipe is presumably calling for Spanish paprika, or pimenton. However, there are plenty of non-Spanish paprikas out there, so 'hot' paprika could easily be an unsmoked Hungarian, which has a totally different flavor. The key here, IMO, would be to find a Spanish pimenton, which is likely to be smoked. de la Vera is the best, and its worth getting a tin, regardless of hot or sweet (or bitter-sweet) as the smokiness it lends to dishes makes it a wonderful 'secret' ingredient in all kinds of things.
Interchangeable depending on your palate. Spain has pretty large spectrum of pimenton. Wider than you might expect. Pimenton de la Vera refers to the region as does piment d'Esplette. Smoked is "ahumado".
Well if you like spicy that sounds fine, maybe go easy on other spicy ingredients if any. If they smokiness appeals to you, consider liquid smoke in a small amount.
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And yes, Sam, liquid smoke is anathema.
While this is probably anathema to purists one or two drops of liquid smoke to the recipe would add the smokey flavor missing.