In a skillet over medium, saute the onion in butter for 4-5 minutes.
Add the mushrooms and garlic and cook for 5 minutes. Add sherry, salt and pepper and cook for 10 minutes. Let cool. Preheat oven to 350 degrees.
Combine cream cheese, eggs, spinach, walnuts, parsley and tarragon.
Add in cooled mushroom mixture.
Place in a buttered loaf pan. Cover with foil. Place loaf pan in larger and deeper pan partially filled with water. Bake 1 hour 15 minutes.
After baking, remove from oven and chill inverted on a plate. Then slice and serve.
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