In a 5- to 6-quart pan over high heat, stir shallots and sherry until shallots are limp, about 10 minutes.
Add sour cream, broth, gnocchi, chicken, and parsley. Stir until gnocchi are hot, about 5 minutes.
Spoon into bowls and season with nutmeg and salt to taste.
* Percent Daily Values are based on a 2,000 calorie diet. Your daily value may be higher or lower depending on your calorie needs.