Heat oven to 375°F; butter a 9-inch square 2-quart dish. Mix cream, milk, 4 ounces Gruyere, Dijon, garlic, salt, pepper, and nutmeg in a large bowl.
Slice potatoes evenly 1/8 inch thick; do not rinse. Turn through cream to coat both sides.
Stand small stacks upright on edges in snug rows with curved tops exposed. Pour all remaining cream evenly over and between rows.
Cover tightly with foil; bake 50 minutes. Uncover; add remaining Gruyere. Bake 25 to 30 minutes more until exposed edges golden and knife slides easily through several center spots.
Rest 15 minutes to settle cream; lift portions with a broad spoon or spatula.