Preheat oven to 350 degrees. Butter a 9-inch square baking dish, and set aside.
Whisk together cream, 1 tsp salt, 1/4 tsp pepper, and the nutmeg in a small bowl, set aside. Toss potatoes, 1 tsp salt, and 1/4 tsp pepper in a large bowl.
Arrange 1/3 potatoes in buttered dish, overlapping slices. Sprinkle with 1/3 of the cheese. Repeat two more times with remaining potatoes and cheese (end with a cheese layer). Pour reserved cream mixture over top layers. Gently shake dish back and forth to distribute evenly.
Cover with foil; bake 45 minutes. Remove foil; bake until bubbling and well browned about 30 minutes more. Let cool slightly before serving.
Recipe can be doubled. Adjust baking time to 1 hour covered with foil, and 30 minutes uncovered or until well browned and bubbly.