Peel and thinly slice the potatoes.
Add them to a large saucepan, or Dutch oven, along with the cream, milk, shallot, thyme, nutmeg, salt and pepper.
Bring to a slow simmer, over medium low heat, for 10 minutes.
Drain the potatoes, reserving the cream mixture.
Layer the partly cooked potatoes in a shallow baking dish in two layers, adding the grated gruyere cheese between the layers and on top.
Pour the reserved cream mixture over the potatoes and bake at 350°F for about 1 hour or until the top is golden brown and the potatoes are fork tender.
Remove from oven and allow to sit for 10 – 15 minutes before serving.