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 3–4 minutes until just tender-crisp. Drain thoroughly and set aside.
03 - In a large skillet over medium heat, melt the butter. Add the chopped onion and sauté for 3–4 minutes until translucent and fragrant. Stir in the minced garlic and cook for an additional minute, watching closely to prevent browning.
04 - Pour the heavy cream into the skillet and bring to a gentle simmer. Add ¾ cup grated Parmesan, shredded mozzarella, salt, black pepper, dried thyme, and ground nutmeg. Stir continuously for 2–3 minutes until all the cheese has melted and the sauce thickens slightly.
05 - Fold the blanched Brussels sprouts into the creamy sauce, coating them evenly. Transfer the entire mixture into the prepared baking dish, spreading it into an even layer.
06 - In a small bowl, combine the panko breadcrumbs, ¼ 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 20–25 minutes until the edges are bubbling and the topping is a deep golden brown. Allow the casserole to rest for 5 minutes before serving.