Preheat oven to 450°F. Smear 1 tablespoon of the softened butter around the inside wall and bottom of a 1.5 quart soufflé dish. Add Parmesan cheese and "flour" or dust the soufflé, coating bottom and sides with the cheese completely. If you find you require additional cheese for this step, grate and add more. Set aside.
Warm milk in heavy small saucepan over medium-low heat. Reduce heat but keep milk warm once steaming.
Melt the remaining 2 tablespoons of butter in a large sauce pan over medium heat. Stir in the flour and use a wire whisk to incorporate. Mixture will begin to foam. Cook 3 minutes to cook out the raw taste of the flour. Mixture should be very lightly golden and smell nutty.
Remove saucepan from heat. Add the finely minced herbs and stir. Pour in warm milk, whisking vigorously until very smooth. Return pot to medium low heat to simmer for 1 minute, whisking constantly. Sauce will thicken as it is whisked. Season with salt and paprika and nutmeg.
Add egg yolks one at a time, whisking to blend after each addition. There is no need to temper the yolks prior to adding. Remove the egg mixture to a large bowl and set aside to cool to lukewarm temperature.
Using the whip attachment of a stand mixer or an electric mixer, beat egg whites in a clean and dry bowl until stiff peaks form. Do not over beat the whites.
Add 1/3 of the stiffly beaten whites into what should now be the lukewarm temperature soufflé base along with half the grated cheddar. Use a rubber spatula, run under the batter scraping the bottom of the bowl while folding the batter up and over onto the whites. Turn the bowl 1/4 turn clockwise. Repeat.
Continue after each fold, turning 1/4 turn clockwise until the whites are no longer streaky in the batter. Do this twice more using the remaining two thirds of the whites while gradually sprinkling in the remaining grated cheddar cheese until mostly all streaks are gone. Transfer batter to the prepared buttered and coated soufflé dish.
Place dish in oven and immediately reduce oven temperature to 375°F. Bake until soufflé is puffed and golden brown on top, about 25 minutes. The center should move only slightly when dish is shaken gently. Do not open oven door during first 20 minutes. Serve immediately.