Rich Mushroom Gravy Recipe for Schnitzel, Steak and More

This mushroom gravy recipe is a rich, savory sauce built on sautéed mushrooms and shallots, a simple butter-and-flour roux, and beef broth. It comes together in about 15 minutes with one pot, and it’s versatile enough to spoon over schnitzel, mashed potatoes, steak or roasted meats.

What Is Mushroom Gravy?

Mushroom gravy is a savory sauce made by cooking down mushrooms and aromatics, then thickening the mixture with a roux (a butter-and-flour base) and a flavorful stock, usually beef. It’s a staple in both American and German cooking, showing up everywhere from Sunday dinners to schnitzel topped with a rich, mushroom-forward sauce known as jägerschnitzel.

This version keeps things simple: shallots and mushrooms sautéed in butter, a quick flour-based roux, and beef broth simmered until thick and glossy.

What you’ll need

• Butter: Used both to sauté the mushrooms and shallots, and to build the roux that thickens the gravy.
• Shallots: Milder and slightly sweeter than onion, shallots add depth without overpowering the mushrooms.
• Mushrooms: The star of the dish. Cremini or button mushrooms both work well here.
• Flour: Combined with butter to form a roux, which thickens the gravy to a rich, spoonable consistency.
• Beef Broth or Beef Stock: The base of the gravy. Beef broth gives this gravy its deep, savory flavor.
• Salt and Pepper: Balances and rounds out the flavor.

Substitutions: You can swap shallots for a small yellow onion if that's what you have on hand. Beef broth can be swapped for chicken broth or vegetable broth for a lighter flavor, though the gravy will taste less rich.

See the full recipe card above for servings and a full list of ingredients.

How to Make Mushroom Gravy

This comes together quickly, so have your ingredients prepped and ready before you start the pan.

Step 1: Sauté the shallots and mushrooms

Melt 3 tablespoons of the butter in a pot or saucepan over medium heat. Add the shallots and mushrooms, and sauté until tender, about 5-7 minutes.

GCG PRO TIP: Let the mushrooms cook until they release their moisture and start to brown slightly, rather than rushing this step. That browning is where a lot of the gravy's flavor comes from.

Step 2: Make the roux

Add the remaining 1 tablespoon of butter to the pan. Once melted, stir in the all-purpose flour. Cook for about 60 seconds, stirring constantly.

GCG PRO TIP: Don't skip cooking the flour for that full 60 seconds. This cooks out the raw flour taste and helps the gravy thicken smoothly instead of tasting pasty. Cooking down a roux like this also helps prevent lumps in your gravy.

Step 3: Add the broth

Pour in the beef broth, stirring to combine and scraping up any browned bits from the bottom of the pan. Bring to a boil, then reduce to a simmer.

Step 4: Simmer until thickened

Let the gravy simmer, stirring occasionally, until it thickens to a rich, spoonable consistency, about 5-8 minutes. Season with salt and pepper to taste.

How to Serve Mushroom Gravy

This easy mushroom gravy recipe is delicious spooned over Classic Schnitzel for a jägerschnitzel-style plate, but it’s just as good over mashed potatoes, roasted chicken, steak or loco moco.

Storage

Store leftover mushroom gravy in an airtight container in the refrigerator for up to 4 days. Reheat gently on the stovetop over low heat or in the microwave, stirring occasionally, and add a splash of broth if it’s thickened up too much in the fridge.

Mushroom gravy can also be frozen for up to 2 months, though the texture may separate slightly once thawed. Reheat slowly and whisk well to bring it back together.