Heat oven to 400 degrees F. Place baking rack in lower third of oven.
Heat olive oil in 12-inch skillet over medium-high heat. Add potatoes, garlic and shallots. Toss in skillet until well mixed. Add thyme, rosemary and nutmeg. Toss well. When potatoes are hot, transfer to baking pan and spread in single layer.
Place pan in preheated oven on lower rack. Roast potatoes until golden and just tender, about 25 minutes, turning once midway.
Add vinegar. Toss well. Season to taste with salt and pepper. Return to oven until sizzling, about 7 minutes. Serve immediately.