01 - Preheat oven to 400°F. Lightly grease a 9x13-inch baking dish with butter or nonstick spray.
02 - Bring a large pot of salted water to a rolling boil. Add trimmed and halved Brussels sprouts, blanching for 3-4 minutes until just tender. Drain thoroughly and set aside.
03 - Melt butter in a large skillet over medium heat. Add the finely chopped onion and sauté for 3-4 minutes until translucent. Stir in minced garlic and cook for 1 additional minute until fragrant.
04 - Pour heavy cream into the skillet and bring to a gentle simmer. Add ¾ cup grated Parmesan, shredded mozzarella, salt, black pepper, dried thyme, and ground nutmeg. Cook for 2-3 minutes, stirring continuously until the cheeses have fully melted and the sauce thickens slightly.
05 - Fold the blanched Brussels sprouts into the creamy sauce, ensuring even coating. Transfer the entire mixture into the prepared baking dish, spreading it into an even layer.
06 - In a small bowl, combine panko breadcrumbs, ¼ cup grated Parmesan, and olive oil. Toss until the breadcrumbs are evenly moistened, then sprinkle the mixture uniformly over the casserole surface.
07 - Bake for 20-25 minutes until the edges are bubbling and the topping is golden brown. Allow the casserole to rest for 5 minutes before serving.