Heat the butter and olive oil over medium heat in a non-stick skillet until the butter is melted.
Add the chorizo and cook for about 5 minutes, stirring occasionally.
Add the zucchini, peppers and all the seasonings (smoked paprika through salt). Cook until the zucchini is starting to soften for another 5 minutes, stirring occasionally.
Add the crushed tomatoes and bring the sauce to a simmer. Cover the skillet partially and cook the sauce over low heat until it has thickened, an additional 5 - 8 minutes.
Add the eggs (evenly spaced in the skillet), cover the skillet and cook for 3 - 7 minutes, or until the eggs are cooked to your liking.
Garnish the eggs and sauce with fresh cilantro and shredded Manchego cheese. Serve immediately.