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Preheat the oven to 375°F.
Place shallots and thyme on a piece of aluminum foil and drizzle with a little olive oil. Gather up corners of aluminum foil to enclose shallots and place the packet in a pie pan. Bake for 15 to 20 minutes or until shallots are soft when gently squeezed. Let cool.
Transfer to a blender or food processor, sprinkle flour over shallots and process 1 minute. Add vegetable stock, sherry, yeast flakes, salt and pepper, and blend for an additional 1 to 2 minutes to thoroughly combine. Transfer mixture to a small saucepan. Cook over medium heat while whisking constantly until gravy thickens. Taste and adjust seasonings as needed.