Melt butter in a large skillet over medium heat; add shallots and cook 3 minutes until softened. Add mushrooms and cook over medium-high heat until mushrooms release moisture, about 5 minutes. Add sherry and cook until most of the liquid has evaporated.
With mixer on low speed, combine parsley, chives, mushroom mixture, walnuts, cranberries, salt, TABASCO® Sauce, and cream cheese. Spoon mixture into a medium bowl or 2 smaller bowls and refrigerate at least 2 hours.
When ready to serve, unmold pâté onto a platter. Garnish with cranberries and chives, if desired. Serve with crackers.
Makes 4 cups.
Adapted from A Celebration of Herbs, 2003 TABASCO® Community Cookbook Awards. First Place National Winner