Tangy Hot Potato Salad

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3/4 cup dry white wine

1/4 cup white vinegar

3 tablespoons unsalted butter

1 medium shallot, finely chopped

1 1/2 pounds baby red new potatoes, scrubbed and quartered

2 tablespoons water

Salt and freshly ground pepper

2 tablespoons coarsely chopped tarragon leaves

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