Preheat your oven to 375°F. In a skillet, cook the sliced mushrooms over medium heat until they release moisture and become tender, about 5 minutes.
In a large bowl, combine the cooked mushrooms, rice, shredded mozzarella, Parmesan, cream of mushroom soup, milk, and seasonings. Stir well to blend the flavors.
Pour the mixture into a greased baking dish, spreading it evenly. Sprinkle bread crumbs or crushed crackers on top for a crispy crust.
Bake for 25-30 minutes or until the casserole is bubbly and the topping is golden brown. Broil for 2 minutes at the end for extra crispiness.
Remove from the oven and let it cool slightly before serving. Pair it with Baked Cream Cheese Chicken for a satisfying meal!