In a saucepan, combine the potatoes, milk, cream, salt, garlic, nutmeg and pepper. Bring to a boil over medium heat, stirring occasionally.
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Pour into a 8x8" glass baking dish coated with nonstick cooking spray. Sprinkle with cheese. Bake, uncovered, at 425° for 20-25 minutes or until heated through and golden brown.
Grated potatoes and creamy Swiss or Gruyere cheese make this side dish a satisfying alternative to mashed or baked potatoes.