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Prepare gnocchi according to package directions. Melt 2 Tbsp. butter in a large skillet over medium-high heat. Add button mushrooms and mushroom blend; sauté 3 minutes or until lightly browned and liquid evaporates. Add shallots and garlic; sauté 2 minutes or until shallots are tender. Add 2 Tbsp. butter to skillet; cook 2 minutes or until lightly browned. Add gnocchi; gently toss. Stir in parsley, salt, and pepper.
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