Preheat the oven to 350 degrees F. Rub the garlic around the inside of an 8 by 8 by 2-inch casserole dish and let it dry. Reserve the remaining garlic. Rub the butter around the inside of the dish. Reserve the remaining butter.
In a medium saucepan, combine the garlic, butter, potatoes, half-and-half, salt, pepper to taste, and nutmeg. Bring to a boil, lower the heat to medium-high, and cook, stirring, until the mixture has thickened, about 5 minutes. Transfer the mixture to the prepared dish. Shake the pan so the potatoes are distributed evenly.
Bake the potatoes, basting occasionally, until lightly browned and bubbly, about 1 hour. Remove from the oven and let cool for 10 minutes before serving.
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