In a large pan over medium heat, sauté the shallot in olive oil until translucent.
Add the arborio rice to the pan, stirring for a minute until the grains are well-coated and slightly toasted.
Pour in the white wine and stir until it is almost completely absorbed.
Begin adding the warmed vegetable broth, 1/2 cup at a time, stirring often. Wait until each addition is almost fully absorbed before adding the next.
With the last addition of broth, add the sliced mushrooms. Season with salt and pepper. Continue to cook until the rice is creamy and mushrooms are tender.
Taste and adjust seasoning as needed. Remove from heat.