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