In a large skillet fry bacon over medium heat until crisp tender and most of the fat has rendered. Remove to a paper towel lined plate and reserve fat. Once bacon has cooled enough to handle, coarsely chop.
Using same skillet, increase heat to medium high and add 1 tbsp of bacon fat. Add sliced mushrooms and cook until starting to brown and moisture has evaporated, about 8 minutes. Remove from pan and set aside.
In same skillet over medium heat add 1 tbsp of bacon fat and chopped shallot and sauté until starting to soften but not brown, about 2 minutes. Add minced garlic and continue to cook for 1 minute, stirring often.
Stir in rice and continue to sauté and stir until rice is coated, about 1 minute. Add wine, stirring to combine and scraping up any bits stuck to the pan. Allow to be mostly absorbed, about 1 minute.
Adjust temperature to medium and add 1/2 cup of broth, stirring to combine and allowing broth to absorb. Continue adding broth by the 1/2 cup, allowing each portion to be mostly absorbed before adding more, stirring often.
When down to the last cup of broth, test for texture and add more broth if desired, saving 1/4 cup for finishing. When the rice is al dente and the last addition of broth has been absorbed, stir in mushrooms and bacon. Add remaining 1/4 cup of broth, parmesan cheese, butter and parsley. Season with salt and freshly ground pepper. Serve immediately.
Makes approximately 4 1/2 cups of risotto, enough for 3 main dish servings or 6 side dish servings.