If using a whisk, mince the shallot. Otherwise, place the roughly chopped shallot into the food processor bowl. Turn on and add balsamic vinegar.
Keeping the machine running, continue to add ingredients through the pusher/sleeve in order. Before adding the olive oil, insert the pusher. Pour olive oil into the pusher, letting it drizzle through the little hole in the bottom to create an emulsion.
Will keep for up to two weeks in the refrigerator.
Use on grilled chicken, steak, and vegetables or on salads like the Watermelon Summer Salad.