01 - Heat olive oil and butter in a large skillet over medium heat. Add the finely diced shallot and cook for 1 to 2 minutes until translucent and softened.
02 - Add the sliced mushrooms to the skillet. Sauté for 5 to 7 minutes, stirring occasionally, until golden brown and all released moisture has evaporated.
03 - Stir in the minced garlic and cook for 1 minute until fragrant, being careful not to let it brown.
04 - Pour in the dry white wine to deglaze the pan, scraping up any browned bits from the bottom. Allow the wine to reduce for 2 to 3 minutes.
05 - Reduce the heat to low. Stir in the heavy cream, grated Parmesan, salt, pepper, and nutmeg if using. Simmer gently for 4 to 5 minutes until the sauce thickens slightly and coats the back of a spoon.
06 - While the sauce simmers, cook the gnocchi in a medium pot of salted boiling water according to package instructions until they float to the surface, about 2 to 3 minutes. Drain well using a slotted spoon.
07 - Add the drained gnocchi to the skillet with the creamy mushroom sauce. Gently toss to coat evenly. Fold in the chopped parsley.
08 - Transfer to warm plates and serve immediately, garnished with extra Parmesan and additional parsley.