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In a large saucepan over medium, heat the olive oil until it glistens. Add the shallot, celery and carrots and cook until just tender, about 5 minutes. Add the garlic and cook until fragrant, about 1 more minute.
Stir in the mushrooms. Cook until they’re softened, about 10 minutes. If there is a lot sticking to the pan, deglaze the pan with a ¼ cup of water to prevent burning before the mushrooms release their own liquid.
Add the crushed tomatoes, salt, pepper, dried herbs, nutmeg, sugar and the stock or wine. Stir to combine. Bring to a heavy simmer over high heat before turning the heat to medium-low and simmering for 10-15 minutes until the sauce has thickened.
Serve over creamy polenta with Parmesan cheese and fresh basil.