Warm the vegetable broth in a saucepan over low heat, keeping it just below simmering.
In your large pan, heat the olive oil over medium heat and sauté the sliced mushrooms until they turn golden and fragrant, about 5-7 minutes. Set aside.
In the same pan, add a touch more oil if needed, then gently cook the finely chopped shallot and minced garlic over low heat until translucent, about 2-3 minutes, stirring often.
Stir the Arborio rice into the pan, toasting it for about 2 minutes until it becomes slightly translucent and releases a toasty aroma.
Begin ladling in the warm broth, about ½ cup at a time, stirring constantly and waiting until most of the liquid is absorbed before adding more. Maintain a gentle simmer and continue this process for about 20-25 minutes, until the rice is tender but still has a slight bite.
When the rice is just tender, gently fold in the sautéed mushrooms. Cook for another 2 minutes to meld the flavors.
Turn off the heat and stir in the butter and freshly grated Parmesan cheese until the risotto becomes glossy and creamy. Cover the pan and let rest for 2 minutes.
Give the risotto a final stir, taste, and adjust seasoning if needed. Serve immediately, garnished with extra Parmesan if desired.
