-
1
Place diced potato into a small pot.
-
2
Pour in enough cold water to cover potatoes.
-
3
Cover with lid and bring to boil.
-
4
Reduce to simmer for 5 minutes or until they are barely fork tender.
-
5
Drain and set aside.
-
6
Wipe out pot with paper towel and set aside.
-
7
While potatoes simmer, render out bacon slices and brown.
-
8
Remove to paper towel and pour off excess grease.
-
9
Saute onions in 1 tablespoon butter in same pan until tender, 5-7 minutes.
-
10
Remove from heat.
-
11
To make the sauce, place small pot you cooked potatoes in over medium heat.
-
12
Melt in 2 tablespoons butter.
-
13
Sprinkle in flour and whisk to create a paste.
-
14
Cook 1 minute.
-
15
Whisk in milk.
-
16
Increase heat to medium high and continue whisking until sauce thickens.
-
17
Reduce heat and stir in cream, cream cheese, salt, pepper, nutmeg and 1/2 cup grated cheese.
-
18
Stir until cheeses melt and sauce is smooth.
-
19
Pour cooked potatoes, bacon, onions and sauce into a large bowl.
-
20
Stir to coat.
-
21
Pour entire contents of bowl into greased baking dish.
-
22
Top with remaining 1/2 cup of cheese.
-
23
Bake at 375 degrees for 30 minutes covered with foil.
-
24
Place under broiler to brown the top if desired.
-
25
Serve hot.