Bring a large pot of salted water to a boil. Add the gnocchi and cook according to package instructions until they float to the surface, about 2-3 minutes. Drain and set aside.

In a skillet, heat olive oil over medium heat. Add the chopped onion and sauté until translucent, about 5 minutes.

Add the minced garlic and sliced mushrooms to the skillet. Cook until the mushrooms are browned and have released their moisture, about 7-8 minutes.

Stir in the thyme, salt, and pepper. Pour in the heavy cream and bring to a simmer. Cook for another 3-4 minutes until the sauce thickens slightly.

Add the grated parmesan cheese and stir until melted and combined.

Add the cooked gnocchi to the mushroom cream sauce and gently toss to coat. Serve immediately, garnished with additional parmesan if desired.