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Pour boiling water over mushrooms and set aside for 5 minutes to hydrate. Squeeze out excess water from mushrooms, and chop finely. Preheat the oven to 425°F. Lightly coat a 12-cup muffin pan with spray oil.
Heat oil in a large skillet. Add shallot and garlic and cook over medium heat, stirring frequently, until fragrant, 2 to 3 minutes. Stir in mushrooms and cook 1 to 2 minutes longer. Remove from heat and stir in sage, pepper and salt.
Whisk together eggs and milk in a medium bowl. Stir in flour just until combined. Fold in mushroom mixture. Divide batter evenly among muffin cups. Sprinkle with cheese. Bake 10 minutes, then lower heat to 350°F and bake until popovers are puffed, golden and crisp, about 10 to 15 minutes longer. (Do not open oven until popovers have been in at least 20 minutes total.) Serve immediately.