Pierce potatoes with fork. Microwave, partially covered, 12 to 15 minutes. Cut in 1-inch pieces. Or cut raw potatoes into 1-inch pieces. Simmer in water in saucepan 12 to 15 minutes; Drain.
Meanwhile, cook shallots in butter in saucepan over low heat 5 minutes, until softened. Remove from heat; add basil, parsley, salt and pepper. Add to hot potatoes.