Heat 1 cup of water in the microwave in a medium bowl. Reconstitute dried porcini mushrooms until doubled in size. Drain and discard remaining liquid.
In a large, high topped skillet melt 2 tablespoons of the butter and 1 tablespoon of the oil. Saute the shallot and half of onion until translucent, approximately 5 minutes.
Add all three types of mushrooms, bay leaves, dried thyme and parsley. Saute for an additional 3-5 minutes or until the mushrooms have reduced in size by half; they will still be taunt, but not mushy. Season lightly with salt and pepper. Remove from skillet and set aside.
In the same large skillet without rinsing, melt the remaining 2 tablespoons extra of the oil and 2 tablespoons of the butter. At the same time, bring the broth to a simmer over low heat in a separate saucepan.
Add the arborio rice and remaining half of the onion to the large skillet with melted butter and olive oil. Stir over medium heat until the rice is uniformly lightly browned, approximately 5-7 minutes.
Stir in the white wine until evaporated. Ladle in one cup of the hot broth and stir. Cook until absorbed. Continue to add 1 cup of simmering broth at a time, waiting until it is absorbed before adding the next, until all broth is gone. This process takes about 20-25 minutes.
Return mushroom mixture to the rice in the skillet. Heat for 2-3 minutes. Stir in the Parmesan cheese and serve.
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