In a skillet, heat up the olive oil over medium heat. Add the mushrooms, salt and pepper. Let them cook undisturbed for 2-3 minutes until golden brown. Then stir occasionally until cooked through. Turn off the heat and add the chopped herbs.
In a large pot, bring the water, milk or stock to a boil. Add the salt and then slowly pour the polenta, whisking constantly with a wooden spoon so that no lumps are formed. Reduce the heat and stir for a few more minutes until it thickens. Add the cheese and check the seasoning.
Serve hot topped with the mushrooms.