In a large saucepan, melt butter. Stir in the flour, pepper and allspice until smooth; gradually add the broth, sherry and cream. Bring to a boil. Add mushrooms and garlic. Reduce heat; cover and simmer for 5-6 minutes or until mushrooms are tender.
Add cheese; cook and stir until melted. Garnish servings with chives and paprika.
