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For polenta, bring 4 ½ cups water and milk to high simmer in medium-size heavy saucepan set over medium-high heat. Stir in teaspoon salt. Pour polenta slowly into liquid, stirring with whisk to prevent clumping. Continue stirring 2 to 3 minutes, as mixture thickens.
Turn heat to low. Cook approximately 40 to 45 minutes, stirring every 5 to 10 minutes. If polenta becomes thick, thin it with ½ cup water, stir well, and continue cooking. Add up to 1 cup more water, as necessary, to keep polenta soft enough to stir.
Meanwhile, heat olive oil in medium-sized skillet on medium-high heat. Add mushrooms and garlic. Cook mushrooms 5 minutes or until they start to brown. Add wine to deglaze pan. Reduce heat to low and simmer 5 to 6 minutes or until mushrooms are tender and liquid is reduced. Add butter and cook until melted and sauce slightly thickens.
Divide polenta between bowls, then top with mushrooms and sauce, and parmesan, if desired. Serve immediately.