In a sauce pot, combine the horseradish, vinegar and shallots together. Season with salt and pepper. Bring the liquid up to a boil and reduce to a simmer. Simmer the horseradish for 4-5 minutes. Remove from the heat.
Using a hand-held blender, cream the horseradish until smooth. Spoon the horseradish in a clear small bowl.
Yield: about 1/2 cup