How do I install OSX as a guest?

I just updated to 7.0.15106 and the option to use the recovery partition to install Mountain Lion has disappeared from the New VM window.

How am I supposed to install an OSX guest now?

 

I second this, the option appears to be missing....

 

Third this. What happened?

edit:

Here is an utterly unhelpful KB Article:

http://kb.parallels.com/en/114501

Unable to install Mountain Lion Virtual Machine in Parallels Desktop 7
Article ID: 114501

Created On: Aug, 2 2012

Last Review: Aug, 2 2012

APPLIES TO: Desktop Virtualization

Symptoms
You upgraded your Mac OS to OS X Mountain Lion and you are unable to install Mac OS X Lion Virtual Machine by clicking on Install OS X Lion using the Recovery Partition

Cause
This functionality is available only for OS X Lion host Macs; the Install OS X Lion using the Recovery Partition icon will be removed from Parallels Desktop 7 if host OS is OS X Mountain Lion.