In food processor, pulse mushrooms until finely chopped; transfer to bowl and set aside.

Cut off and discard fat and connective tissue from livers. Add livers to large saucepan of boiling salted water, then reduce heat to very gentle simmer and poach just until still tender but no longer pink in centre of thickest part, 6 to 8 minutes. Drain and let cool.

Pour cream into 4-cup/1 L Pyrex measuring cup or microwaveable bowl; add bay leaf. In microwave on high, boil until cream is reduced to about 1/3 cup/75 mL, 4 to 5 minutes; remove bay leaf. In food processor, whir together livers, cream, half of the salt, and black pepper until smooth; leave liver mixture in food processor.

In saucepan or skillet over medium heat, cook shallots in butter until softened. Add mushrooms, remaining salt, thyme, nutmeg, white pepper, allspice and cloves; cook, stirring often, until mushrooms release liquid. Continue cooking and stirring until mushrooms are dry; stir in sherry and cook, stirring, until liquid has evaporated but mushrooms are still moist.

Add to liver mixture; whir together, pushing mixture down side with spatula as necessary, until in smooth pâté. Scrape into bowl; cover and refrigerate overnight or for up to 3 days. Bring to room temperature before serving.

Makes 2-1/3 cups/575 mL.