Step 1

Lightly butter a 8-cup baking dish.

Step 2

In a large skillet set over medium heat, heat the butter until melted and foamy. Add the shallots and saute for 3 to 4 minutes, or until softened. Add the mushrooms, season with salt and pepper, and cook 4 minutes longer or until softened and starting to brown. Stir in the garlic and thyme, and cook 1 minute longer or until fragrant. Remove from heat and let cool for 5 minutes.

Step 3

Meanwhile, whisk the eggs in a large mixing bowl. Add the half and half and 1 cup of grated cheese, stir to combine. Gently fold in the cubed bread and sauteed mushrooms. Spoon the mixture into the prepared dish, and set aside to soak while you preheat the oven.

Step 4

Preheat oven to 350F. Once the oven is hot, cover the bread pudding with aluminum foil and bake for 30 minutes, or just until the centre is set. Remove foil and sprinkle with the reserved ¼ cup cheese. Bake 25-30 minutes longer, or until the top is nice and browned.