Cut skinless smoked sausage in half, lengthwise, and then chop into 1/2 inch “half moon” cuts. Cook in a frying pan for about 15 minutes, turning frequently to SLIGHTLY brown. Meanwhile, put cooked & diced potatoes in 2 quart casserole. Add cooked meat and give it a gentle toss.
Mix all remaining ingredients (except for shredded cheddar cheese & the paprika) in a saucepan over medium heat until warm, melted and smooth. (Use a whisk and stir constantly.).
Pour white/cheese sauce over potatoes and meat. Sprinkle shredded sharp cheddar cheese on top, and then sprinkle paprika evenly over the top.
Bake in preheated 350°F oven for 35-45 minutes (watch, until golden brown on top).
NOTE: You can substitute: 1/2 lb. hot dogs, sliced into 1/2-inch slices OR 1/2 lb. ham diced into 1/2-inch dices OR 12 oz. can of Spam diced into 1/2-inch dices, instead of the smoked sausage.