Heat the olive oil in a wide pot over medium-high heat. Add the mushrooms and arrange them into an even layer. Cook, occasionally stirring, for 12–15 minutes until a golden-brown crust forms and any liquid in the pot has evaporated. Season with salt and pepper and continue cooking for 2–4 minutes more until completely browned.
Add the aromatics:
Add the diced shallots and dry thyme to the pot of mushrooms and toss to combine. Cook for 1–2 minutes until fragrant.
Cook the orzo:
If the pot is dry, add another teaspoon of olive oil. Add the orzo and cook, often stirring, for 1–2 minutes until it begins to toast. Season with a big pinch of salt.
Pour in half the water and bring to a boil. Reduce heat to low, and stir often until the water is absorbed–about 5–6 minutes. Pour in the remaining water and continue cooking, often stirring until the water is completely absorbed and the orzo is al dente, about 15–18 minutes total. If you need more liquid, add it in 1/4 cup increments.
Once the orzo is al dente, taste and season with salt and pepper. Add in the parsley and cook for 2 minutes more. Turn off the heat.
To serve:
Spoon the cooked orzo into shallow bowls. Serve with more minced parsley on top and lemon wedges, if you like. Enjoy!