Preheat the oven: Set your oven to 375°F (190°C). Lightly grease a small baking dish (about 1- to 1.5-quart) with butter or olive oil spray.
Sauté aromatics: Melt the butter in a skillet over medium heat. Add minced shallot and cook until soft and fragrant, about 2–3 minutes.
Add garlic and cook 30 seconds more, stirring so it doesn’t brown.
Cook the shrimp: Add the chopped shrimp to the skillet. Season with a pinch of salt and pepper. Cook just until pink and opaque, 2–3 minutes.
Remove from heat. Do not overcook—the shrimp will cook more in the oven.
Mix the base: In a large bowl, combine softened cream cheese, sour cream, Old Bay, smoked paprika, cayenne (if using), lemon zest, and lemon juice. Beat with a spatula or hand mixer until smooth and creamy.
Add the cheeses: Fold in mozzarella, cheddar, and Parmesan, reserving a small handful of mozzarella and cheddar for topping.
Fold in seafood: Gently stir in the cooked shrimp (with any buttery juices), the crab meat, green onions, and parsley.
Taste and adjust salt, pepper, or lemon as needed. The mixture should be well-seasoned and bright.
Assemble: Spread the mixture evenly in the prepared baking dish. Sprinkle the reserved mozzarella and cheddar on top for a golden, bubbly crust.
Bake: Bake for 18–22 minutes, until the edges are bubbling and the top is lightly browned.
If you’d like more color, broil for 1–2 minutes at the end, watching closely.
Garnish and serve: Let the dip rest for 5 minutes, then sprinkle extra green onions and a little parsley over the top. Serve warm with toasted baguette, crackers, or veggies.