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Preheat oven to 400°F.
Beat egg in a large bowl. Stir in shallots, parsley, salt and pepper. Place shredded squash in the center of a clean kitchen towel; gather up the ends and twist to squeeze out any liquid. Add the squash and cheese to the bowl; stir to combine.
Heat oil in a large ovenproof nonstick skillet over medium heat. Pack a 1/3-cup measuring cup with the squash mixture and unmold it into the pan; gently pat it down to form a 3-inch cake. Repeat, making 4 squash cakes. Cook until browned and crispy on the bottom, 3 to 4 minutes. Gently turn the cakes over and transfer the pan to the oven. Bake for 10 minutes. Serve immediately.