Gnocchi with Tomato Sauce

1 Tbsp extra-virgin olive oil
1 small onion, finely chopped
3 cloves garlic, minced
1/4 cup dry white wine
Mushrooms (cremini or baby bella)
1 can (28 oz) whole plum tomatoes with juice, crushed by hand
1 can (14 1/2 oz) tomato sauce
2 sprigs basil
1/4 tsp crushed red pepper flakes
Coarse salt and freshly ground pepper
Thinly shaved parmesan cheese, for serving
1 bunch arugula

Heat oil in a large saucepan over medium heat until hot but not smoking. Add onion and garlic; cook, stirring occasionally, until onion is translucent, 5 to 7 minutes. Add mushrooms and cook, 2 minutes. Add wine; cook until most liquid has evaporated. Add tomatoes and juice, tomato sauce, basil, and red pepper flakes. Reduce heat to medium-low; simmer until slightly thick, about 30 minutes. Season with salt and pepper. Remove from heat; cover to keep warm.

Bring a large pot water to a boil; add 1 tablespoon salt. Add half of the gnocchi; when they rise to the top (after about 2 minutes), continue to cook until tender, about 15 seconds more. Transfer gnocchi with a slotted spoon to pan with sauce. Repeat process with remaining gnocchi.

Reheat gnocchi over low heat; gently toss. Add arugula and stir until wilted. Serve with cheese shavings.