This is an excellent lamb dish, lamb works well with chorizo and the smoked paprika adds another dimension.
First cut the lamb into large cubes and coat in flour with salt and pepper, simply place it in a freezer bag and move it about.
Put a large pan onto a high heat and add a good glug of olive oil, when hot add the lamb, shaking off excess flour.
You want to get the meat nice and brown on all sides so so it four or five bits at a time and then remove with a slotted spoon and set aside for now.
When the lamb is done turn the heat down to low and add the onions and fry for about five minutes.
Add the garlic and carrot and fry for another five minutes then put the heat right up and return the lamb to the pan along with chorizo.
When the pan is up to heat add the port and let it reduce by half, the sauce should be quite thick already.
Add the lamb stock, bay leaf and smoked paprika.
Put in an oven at 160 and cook for an hour, when ready check for seasoning and serve with rice or potatoes with vegetables
If you are looking for ideas for Spanish style food Rick Stein has this excellent book