Step 1: In a pan just wide enough to hold the shallots, mushrooms, and chestnuts in one layer, melt half the butter over medium-low heat.
Step 2: Add the shallots and cook them, turning occasionally, until they begin to color, about 5 minutes.
Step 3: Add the mushrooms with the remaining butter and cook, stirring, until they exude their juices and turn a rich brown, 7-8 minutes more.
Step 4: Check to be sure the bottom of the pan doesn't burn as the liquid evaporates (you can add a little more stock or water).
Step 5: Add the chestnuts and turn to coat them in the juices. Add the sherry with the thyme and stir to dissolve the dark crusty juices.
Step 6: Add the stock and let it reduce to a sauce-glaze. Season with salt and pepper.
Step 7: Serve at once garnished with fresh thyme, or chill to reheat gently for another time.
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