01 - Preheat oven to 375°F.
02 - Heat olive oil in a skillet over medium heat. Sauté shallot and garlic for 1-2 minutes until fragrant.
03 - Add chopped mushrooms and cook for 6-7 minutes, stirring occasionally, until liquid releases and evaporates. Season with salt, pepper, and thyme. Remove from heat and cool slightly.
04 - Combine cream cheese, sour cream, mozzarella, Parmesan, and half the parsley in a large bowl. Mix until smooth and fully incorporated.
05 - Fold the cooled mushroom mixture into the cheese base until evenly distributed throughout.
06 - Spread the mixture evenly into a greased baking dish or ovenproof skillet.
07 - Bake for 20-25 minutes until the top is golden brown and bubbly throughout.
08 - Remove from oven, sprinkle with remaining parsley and optional red pepper flakes. Serve warm with toasted baguette slices, crackers, or fresh vegetables.