4. Step
Reduce heat to medium. Add onions and garlic and cook, stirring often, until translucent, about 3 minutes. Add tomato paste and cook for 1 minute. Add the mushrooms and reserved soaking liquid, stirring to scrape up any browned bits. Cook for 1 minute. Add 1/2 cup sherry, tomatoes, thyme and bay leaf and simmer for 2 minutes.