Cook pasta in salted water until al dente.
Drain in a colander reserving 1/4 cup of the pasta liquid
While pasta is cooking, melt the butter in a saucepan over medium-high heat. Add shallots and saute until tender.
Add cream and bring to a boil. Add salt, pepper, nutmeg and red pepper flakes. Cook until sauce is reduced slightly, about 5 minutes.
Return the pasta to the pot it was cooked in with the reserved liquid. Add butter cream sauce and half of the cheese.
Sprinkle with remaining cheese and add basil