In a large heavy skillet heat oil over medium heat. Add onion and pepper and sauté until softened, 6-8 minutes. Add garlic and sauté 1 minute more.
Stir in tomatoes, tomato paste, paprika, cumin, salt, cayenne, and ½ cup water and cook, stirring occasionally, until tomatoes are cooked down into a thick sauce, 8-10 minutes.
Make 4 depressions in the sauce and crack an egg into each one. Turn down heat to medium-low and simmer gently until the eggs are cooked to desired doneness, 5-10 minutes.
While eggs cook, in a food processor combine cilantro, oil, lime juice, jalapeño, and salt. Process to a paste. Taste and add more salt or lime juice if needed.
Serve shakshuka topped with cilantro sauce.