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 to 4 minutes until just tender. Drain thoroughly and set aside.
03 - Melt butter in a large skillet over medium heat. Add chopped onion and sauté for 3 to 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 Parmesan, mozzarella, salt, pepper, thyme, and nutmeg. Cook for 2 to 3 minutes, stirring continuously, until the cheeses have fully melted and the sauce coats the back of a spoon.
05 - Fold the blanched Brussels sprouts into the creamy sauce until evenly coated. Transfer the mixture to the prepared baking dish, spreading 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. Sprinkle the mixture uniformly over the casserole surface.
07 - Bake for 20 to 25 minutes until the edges are bubbling and the topping is golden brown. Allow the casserole to rest for 5 minutes before serving.