Bring water to a boil in a large saucepan; add bay leaf and shrimp. Cook 1 to 2 minutes, just until shrimp turn pink. Do not overcook. Remove shrimp with slotted spoon and set aside; reserve liquid.
Melt 1 tablespoon of the butter in saucepan; add bell peppers and onion and sauté lightly. With slotted spoon, remove to bowl containing shrimp. Add mushrooms to saucepan and cook over low heat until soft. Remove to bowl with shrimp and vegetables.
Melt remaining 3 tablespoons butter in saucepan; whisk in flour. Add light cream, 3/4 cup of reserved shrimp broth, wine, and TABASCO® Sauce. Cook and stir until thickened.
Season sauce to taste with garlic powder and paprika. Gently stir in shrimp and vegetables and heat through. Serve over rice.
Makes 4 servings.
Adapted from Monhegan Island Cooks, 2003 TABASCO® Community Cookbook Awards, Third Place National Winner.