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Heat oil and butter in a large saute pan over medium-low heat. Once hot add shallots, cook until softened, 3-5 minutes.Increase heat to medium and add mushrooms, salt and pepper. Cook until beginning to brown, about 5 minutes.Add garlic, cook for 30 seconds. Add water, balsamic vinegar and herbs and cook until syrupy, about 2 minutes.Serve warm.