Melt butter over medium heat in a large pot.
Chop shallots and add to pot when butter is melted, stirring periodically.
While shallots are cooking, chop mushrooms into desired size and add to pot. Cook on medium heat, stirring occasionally, for about five minutes.
Add sherry and continue to cook for a few minutes.
Add garlic, vegetable broth, cream, and a few dashes of Italian seasoning.
Increase heat to high, and just before it comes to a boil, slowly stir in the flour and reduce heat to medium low.
Simmer soup for about 15 minutes until cooked through and thickened.
Add salt & pepper, to taste.