Prep crabmeat by rinsing in a fine-mesh sieve, then gently squeezing small handfuls of crab to remove water and feel for any shells in the meat. Remove any shells, and put the crabmeat into a small bowl, reserving about ¼ cup to use as a garnish.
Peel shallots, and chop finely.
Melt butter in a large nonstick saucepan over medium-low heat.
Sauté chopped shallots until translucent, about 2-3 minutes.
Whisk in flour until combined.
Slowly whisk in clam juice, milk, and cream. Turn heat up to medium, and cook until bubbles begin to appear around the edges, about 5-7 minutes.
Stir in 3 teaspoons Old Bay seasoning, garlic powder, dry mustard, and pepper. Taste and add salt if necessary (some clam juice is saltier than others).
Simmer for another 2 minutes, until soup is beginning to thicken, then stir in crabmeat.
Cook for 8 more minutes, keeping soup at a low simmer. (Turn down the heat as necessary.)
Taste, and add another teaspoon of Old Bay if you like it spicy. Stir in sherry.
If you like a soup that is a little more tangy, add 1 or 2 tablespoons of lemon juice.
Garnish with parsley and reserved crabmeat, then sprinkle with more Old Bay.
Notes
Storage Tips: You can store leftovers in an airtight container in the refrigerator for up to 2 days. Reheat gently on the stovetop, or reheat on 80% power in the microwave, stirring occasionally. Freezing is not recommended.Expert Tips: This soup benefits from a careful watch on it as you cook. You may need to adjust the heat several times. You don’t want to scorch the shallot/flour mixture, and you don’t want the soup to ever fully boil, so you need to keep an eye on it. If you prefer a thicker consistency for this creamy soup, make a paste of cornstarch by combining 1 tablespoon cornstarch with 1 tablespoon water, and add that to the soup as it is simmering. Note that if you have leftovers, the soup will thicken up after it cools.Use a rubber whisk so as not to damage your saucepan when you are whisking in the flour, then the liquids.