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Preheat oven to 425°F. Place shallots in a small baking dish; drizzle with oil. Roast, uncovered, for about 30 minutes or until tender; cool. Peel and cut away the root and stem of each shallot.
Meanwhile, in a small saucepan, bring port to a boil; reduce heat. Simmer, uncovered, for 8 to 9 minutes or until reduced to 2/3 cup; remove from pan. In the same saucepan, melt 1 tablespoon butter; add garlic and cook for 1 minute. Stir in flour; cook and stir about 1 minute more or until light golden brown. Gradually whisk in the reduced port, broth, demi-glace, soy sauce and 1/8 teaspoon pepper. Stir the roasted shallots into the port mixture. Bring to a boil, stirring constantly; reduce heat. Simmer, uncovered, for 2 minutes; strain through a fine sieve. Discard shallots.
In a food processor, combine dried porcini, the remaining 1 1/2 teaspoons pepper and the salt. Cover and process to a powder.
Arrange an oven rack in the upper third of the oven. Increase oven temperature to 475°F. Sprinkle porcini powder onto all meaty sides of lamb. Arrange the lamb on a broiler pan, meaty-sides up. Roast for 15 to 22 minutes or until an instant-read thermometer inserted in the center of the lamb registers 135°F.
Transfer the lamb to a cutting board. Cover loosely with foil; let stand for 10 minutes. (The temperature of the meat will rise 10 degrees upon standing.) Meanwhile, in a small saucepan, heat the port sauce over medium heat until hot. Cut up the remaining 1 tablespoon butter; whisk into the hot sauce. To carve the racks, cut slices between the rib bones. Serve with the port sauce.