Rather, I think your first method is flawed. Because your $\alpha$ is always about the pivot you select. Since you select the contact point as pivot, then $\alpha$ should be about the contact point. So $\alpha$ is not $a/r$ of course.
Here is my approach for this problem.
First, I select the CM (center of mass) as the pivot. Let $f$ be the friction at the contact point. Every moment the total torque about the pivot is
$$\tau= fR= I \alpha$$
Here is another matter. How to determine $I$ ? My opinion is that since the shell is completely filled with frictionless fluid, then the fluid will not rotate with the shell at all since there is literally no force to push it to. So we ought to count only the shell's part. (I'm not definitely sure here, though) And thus $I=\frac{2}{3}MR^2$. Hence
$$f=\frac{I\alpha}{R}=\frac{2}{3}M R\alpha=\frac{2}{3} Ma$$
Then, consider the famous theorem of kinetic energy (which doesn't require conservation
!). Let $l$ be the distance the shell (or the CM, to be exact) has moved from the point where it is released, $v$ be the speed of the CM and $\omega$ be the angular speed. Note that the gravity and the friction are the only net forces acting on the shell together with the fluid contained, we have
$$(2Mg\sin\theta-f)l=\frac{1}{2}(2M)v^2+\frac{1}{2} I \omega^2 $$
Note that for a rotation without sliding, $v=R\omega$ always holds, thus the above equation simplifies to
$$(2Mg\sin\theta-f)l=\frac{4}{3}Mv^2$$
Differentiate both sides by $dt$
$$(2Mg\sin\theta -f)v=\frac{8}{3}Mv \frac{dv}{dt}=\frac{8}{3} Mva$$
Put $f=\frac{2}{3}Ma$ into it and note that $v$ cancels out, thus
$$a=\frac{3}{5}g\sin\theta$$
And as for the torque solution, I'm working on it later. I sense that it would be a bit tricky if we have to select the contact point as pivot, in that the fluid , now unable to ignore, will take a part in $I$. – Vim Jan 23 '15 at 05:46