In a small bowl. Stir together 1/2 tsp paprika and 1 tsp salt. Set aside.
In a small saucepan, combine balsamic vinegar, Cavit red blend, and brown sugar. Whisk until the sugar is dissolved. Bring to a boil and reduce to a simmer, cooking until the sauce has thickened, approximately 5 to 8 minutes.
In a large bowl, stir together potatoes, 1/4 tsp salt, pepper, chorizo, and cheddar. Set aside.
Add flour to one bowl, beat egg and water together in another bowl and breadcrumbs in a third bowl.
Heat 3 inches of vegetable oil in a heavy-bottomed pot over medium-high heat.
Form 2-inch logs out of the potato and chorizo combination. Dredge the logs first in flour, then egg wash, and finally in breadcrumbs. Working in batches, fry until golden on all sides, approximately 2 minutes, and remove to a paper towel lined plate. Season with paprika salt. Serve with red wine dipping sauce.