01 - Preheat oven to 400°F. Lightly grease a 9x13-inch baking dish with butter or non-stick 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 fork-tender. Drain thoroughly and set aside.
03 - Melt butter in a large skillet over medium heat. Add the 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 3/4 cup Parmesan cheese, 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 into an even layer.
06 - In a small bowl, combine panko breadcrumbs, 1/4 cup grated Parmesan, and olive oil. Toss until the breadcrumbs are evenly moistened. Sprinkle the topping uniformly over the casserole surface.
07 - Bake uncovered for 20 to 25 minutes until the edges are bubbly and the topping is golden brown. Allow the casserole to rest for 5 minutes before serving.