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In a frying pan, heat the olive oil, 1 tablespoon butter and sauté the shallots for 3 minutes. Add the morels and cook for 3 more minutes. Set aside. In a thick bottom saucepan, heat the milk, slowly so as not to scald it. Slowly pour in the polenta whisking constantly with a wire whisk. Sprinkle the chile pepper into the mixture and cook until it becomes thick and bubbles, 5 to 7 minutes. Pour in the mushroom mixture and stir well, remove from heat. Pour the mixture into a buttered bread pan and refrigerate for 1 hour. The polenta will set up rather firmly. Cut the polenta into slices 1" thick and place on a non-stick baking dish. Melt the remaining butter and drizzle on top of the polenta, then sprinkle with Romano cheese. Bake for 15 to 20 minutes at 375°.