In a large skillet or wok, heat the olive oil and saute the garlic and mushrooms for about 5 minutes, or until the mushrooms soften and release juices. If you prefer a less 'mushroomy' taste, drain the mushroom liquid and use more milk in the next step.
Add the cream cheese and milk (see notes) to the skillet, and continue to stir until the cream cheese has melted. Add the Parmesan cheese, frozen peas, and frozen gnocchi. Continue to cook while stirring for about 2-3 minutes, or until the gnocchi has cooked. Be careful here and don't overcook the gnocchi!
Remove from heat and stir in fresh basil leaves. Serve immediately.
Notes
If you like a strong mushroom taste, leave the mushroom liquid in the skillet and only use ¼ cup milk for the creamy sauce. If you prefer less of a mushroom taste, drain the mushroom liquid and use ½ cup milk for the creamy sauce.