Prepare Ingredients - Gather all the ingredients - Arborio rice, champagne, vegetable broth, shallots, butter, Parmesan cheese, and fresh chives. Chop the shallots finely, grate the Parmesan cheese, and chop the fresh chives.

Start Cooking - In a large saucepan, melt the butter over medium heat. Add the chopped shallots and cook until translucent, about 2-3 minutes. - Stir the shallots frequently to prevent burning and ensure even cooking.

Toast the Rice - Add the Arborio rice to the saucepan with the shallots. Stir the rice to coat it with the butter and toast it slightly, about 2 minutes.

Deglaze with Champagne - Pour the champagne into the saucepan with the rice. Stir constantly until the champagne is absorbed.

Cook the Risotto - Gradually add the vegetable broth, 1/2 cup at a time, stirring constantly and allowing the liquid to be absorbed before adding more. Cook until the rice is creamy and al dente, about 18-20 minutes.

Finish and Serve - Remove the risotto from the heat and stir in the grated Parmesan cheese. Season with salt and pepper to taste. Serve the risotto topped with fresh chives and additional Parmesan, if desired.