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Preheat oven to 375 degrees.
Cut tops off peppers and remove seeds; set aside.
Heat butter and olive oil in sauté pan over medium heat. Add shallots and garlic and sauté 2-3 minutes. Add mushrooms; season with sea salt and pepper. Toss to combine and sauté another 3-4 minutes. Add sherry and let wine and water from mushrooms cook off completely, 5-7 more minutes.
Combine mushrooms, cheese and cooked rice in a medium bowl and season with sea salt and pepper, to taste.
Stuff peppers with rice mixture and place in square baking dish with about ½-inch water on bottom. Bake 30-35 minutes, or until peppers are soft.