In a small bowl, mix water, soy sauce, nutritional yeast, garlic powder, onion powder, and ground ginger.
In a skillet, sauté the shallot until soft, about 2 minutes. Add a bit of the soy sauce mixture if it starts to stick.
Add the mushrooms and cook slowly until they are soft, about 3 minutes.
Add the soy sauce mixture to the mushrooms.
In a small bowl, whisk the plant milk with cornstarch and smoked paprika. Pour over mushrooms and stir.
Reduce heat to low and continue to stir. It will thicken in about 2 minutes.
Add salt and pepper to taste.