01 - Preheat oven to 400°F. Lightly grease a 9x13-inch baking dish with butter or cooking spray.
02 - Bring a large pot of salted water to a rolling boil. Add the trimmed and halved Brussels sprouts, blanching for 3 to 4 minutes until just fork-tender. Drain thoroughly and set aside.
03 - In a large skillet over medium heat, melt the butter. Add the chopped onion and sauté for 3 to 4 minutes until softened and translucent. Stir in the minced garlic and cook for an additional minute until fragrant.
04 - Pour the heavy cream into the skillet and bring to a gentle simmer. Add ¾ cup grated Parmesan, mozzarella, salt, pepper, dried thyme, and nutmeg. Stir continuously for 2 to 3 minutes 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 entire mixture to the prepared baking dish, spreading it into an even layer.
06 - In a small bowl, combine the panko breadcrumbs, remaining 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 has turned a deep golden brown. Allow the casserole to rest for 5 minutes before serving.