Place butter in a large saucepan over medium heat. When melted, add chopped onion and garlic. Cook, stirring often, until onions are soft. Stir in rice until evenly coated. While constantly stirring, add mushrooms, white wine, salt and pepper flakes. Keep stirring frequently until wine is absorbed.
Gradually stir in chicken broth, about a 1/2 cup at a time. Stir frequently until most of th eborth is absorbed before adding the next half-cup. Once that has been absorbed, add water, half a cup at a time, stirring until almost all liquid is absorbed before adding more. Stop adding once rice is tender and creamy, from 25 to 30 minuts.
Stir in small spoonfuls of the cream cheese, mixing well until all the cheese is used. To serve, top with the shredded cheese and chopped parsley.