Heat 1 teaspoon oil in a large skillet over medium-high heat. Add shallots and cook, stirring, until starting to lightly brown, about 30 seconds. Add mushrooms and cook, stirring frequently, until their liquid is almost evaporated, 4 to 5 minutes. Add sage, salt and pepper and cook, stirring, for 2 minutes more. Add sherry, scraping up any browned bits, and cook until the liquid evaporates, 2 to 3 minutes.Advertisement
Transfer the mixture to a food processor. Add the remaining 2 tablespoons oil, walnuts and nutritional yeast (or Parmesan) and pulse until very finely chopped, about 30 seconds. Serve garnished with sage, if desired.
Make Ahead Tip: Refrigerate for up to 3 days. Serve at room temperature.
For the best flavor, toast nuts before using in a recipe. For chopped nuts: Place in a small dry skillet and cook over medium-low heat, stirring constantly, until fragrant, 2 to 4 minutes. For whole nuts: Spread on a baking sheet and bake at 350°F, stirring once, until fragrant, 7 to 9 minutes.