Bring a large pot of heavily salted water to a rolling boil.
Place dried morel mushrooms in a bowl and cover with 1 cup hot water; soak for 30 minutes.
While soaking, prep all ingredients by trimming, dicing, and measuring.
Heat a sauté pan over medium-high heat and coat the bottom generously with olive oil.
Add cremini and shiitake mushrooms, sauté without stirring too often until golden brown (about 6 minutes). Season with salt and pepper.
Drain morels, reserving the soaking liquid (mushroom broth). Roughly chop morels and add to the pan.
Reduce heat to medium; add shallots and garlic, cook about 1 minute until fragrant.
Add butter and melt completely.
Pour in sherry wine, add bay leaf, oregano, and thyme. Simmer for 1 minute to reduce.
Add heavy cream and reserved mushroom broth. Season with salt and pepper. Bring to a gentle simmer.
Whisk in Parmesan cheese until melted and smooth. Lower heat and simmer sauce for 8 minutes, stirring frequently.
Meanwhile, cook pappardelle in boiling water until 1 minute less than package instructions.
For optional extra mushrooms, heat olive oil in a separate pan. Sauté oyster mushrooms until golden (about 6 minutes). Season with salt and pepper, then stir in butter and lemon juice. Remove from heat.
Drain pasta and add directly to the sauce, along with lemon juice. Toss to coat thoroughly.
Plate pasta, top with optional sautéed mushrooms, garnish with extra Parmesan or herbs if desired. Serve immediately.