Cheesy Scalloped Potatoes

Cheesy Scalloped Potatoes was pinched from <a href="http://tiphero.com/cheesy-scalloped-potatoes/" target="_blank">tiphero.com.</a>
INGREDIENTS
3 pounds Yukon Gold potatoes, peeled (optional) and sliced ⅛-inch thick
2 cup shredded sharp cheddar cheese, divided
1/2 cup grated Parmesan cheese
3 Tablespoons butter
1 medium onion, thinly sliced
4 cloves garlic, minced
3 Tablespoons all-purpose flour
3 cups whole milk
1 teaspoon kosher salt
1/2 teaspoon black pepper
1/4 teaspoon grated nutmeg
1 1/2 Tablespoons fresh thyme, divided
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