Preheat oven to 400F.
In a big oven-proof skillet sauté melt the butter.
Sauté mushrooms and onion for 3 minutes. Pat oysters dry with a paper towel and add to mushroom mixture.
Sauté 1 minute or until oysters begin to curl. Drain any liquid. Remove skillet from heat and set aside.
In a bowl, whisk the eggs, milk, and paprika, salt and pepper until well blended.
Pour the egg mixture over oyster mixture in skillet. Sprinkle with bacon.
Bake for 20 to 25 minutes or until set and browned.
Cut into wedges and serve.