Had to look up that recipe- a bit much for my tastes, but you're putting a whole raw onion in there; unless you're a real onionomaniac you probably want as mild as you can find. Shallots might not be a bad way to go- the shallots usually available are actually a hybrid between a shallot and a mild onion, I think the italian torpedo onion- 5-6 oz. should be about right.
Since the recipe author doesn't specify, you should be able to get good results with commonly available onions: yellow, white or red.
While I'm sure a shallot could be used as a replacement ingredient, there's really no reason to veer from the recipe unless you've made it before and wish for the more delicate flavor of the shallot.
I rarely have more than one color of onion at home and it's usually the red type since I like the color which I can't use if I'm making a very light-colored preparation (which I seldom do anyhow).
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While I'm sure a shallot could be used as a replacement ingredient, there's really no reason to veer from the recipe unless you've made it before and wish for the more delicate flavor of the shallot.
I rarely have more than one color of onion at home and it's usually the red type since I like the color which I can't use if I'm making a very light-colored preparation (which I seldom do anyhow).
So just use what you have.