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In a large skillet, heat oil over medium-low heat. Cook shallot, stirring often, until softened, about 5 minutes.
Add tomatoes and 1/2 cup water. Bring to a simmer; cook, covered, 5 minutes. Uncover, and raise heat to medium-high; cook, tossing often, until tomatoes have softened and water has evaporated, about 3 minutes.
2 teaspoons olive oil
1 small shallot, minced
2 pints grape tomatoes (4 cups)
2 tablespoons chopped fresh parsley
Coarse salt and ground pepper