creamed onions with bacon and chives

creamed onions with bacon and chives was pinched from <a href="http://smittenkitchen.com/blog/2010/11/creamed-onions-with-bacon-and-chives/" target="_blank">smittenkitchen.com.</a>
INGREDIENTS
100 or so pearl onions, unpeeled (from 3 10-ounce bags)
2 1/2 ounces bacon (applewood-smoked is suggested), cut into a small dice
1 1/4 cups heavy cream
1/4 teaspoon freshly grated nutmeg
2 tablespoons sherry
1/2 bunch chives, cut into 1/2-inch segments
Kosher salt, to taste (I used 1 teaspoon of Diamond Kosher salt)
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