1. Preheat your oven to 375°F (190°C). Lightly grease a small baking dish or ovenproof skillet with olive oil.
2. In a large skillet over medium heat, melt the butter and olive oil together. Add the chopped onion and cook until translucent and soft, about 4 minutes.
3. Add the minced garlic and cook for another 1 minute, until fragrant but not browned. This step always reminds me of Nonna Rosa’s kitchen, where garlic filled the air and made everything feel special.
4. Stir in the finely chopped mushrooms, fresh thyme, and crushed red pepper flakes if using. Cook, stirring occasionally, until the mushrooms have released their moisture and it has mostly evaporated, about 8-10 minutes. The mushrooms will become beautifully tender and concentrated in flavor.
5. Remove the skillet from heat and let the mushroom mixture cool slightly for 5 minutes. This prevents the cream cheese from melting too quickly when added.
6. In a medium bowl, combine the softened cream cheese, mozzarella, Parmesan, and chopped parsley. Fold in the mushroom mixture and season with salt and pepper to taste. I like to give it a gentle stir so the cheese blends smoothly but the mushroom texture remains intact.
7. Transfer the mixture to your prepared baking dish and smooth the top. For a lovely golden crust, sprinkle panko breadcrumbs evenly over the dip.
8. Bake for 20-25 minutes, until the top is bubbly and golden brown. You’ll know it’s ready when the edges start to brown and the dip is hot and inviting throughout.
9. Remove from the oven and let it cool for 5 minutes before serving. This little pause helps the dip set slightly, making it easier to scoop and savor.

One kitchen tip I’ve learned over the years is to finely chop the mushrooms rather than leaving them in chunks. This creates a creamier texture that is more dip-like and easier for little hands to enjoy. Plus, it melds beautifully with the cheeses, giving every bite an even, luscious flavor.