01 - Preheat oven to 400°F. Lightly grease a 9x13-inch baking dish with butter or nonstick spray.
02 - Bring a large pot of salted water to a boil. Add the trimmed and halved Brussels sprouts and blanch for 3 to 4 minutes until just tender. Drain thoroughly and set aside.
03 - Melt the butter in a large skillet over medium heat. Add the chopped onion and sauté for 3 to 4 minutes until translucent. Stir in the minced garlic and cook for 1 additional minute until fragrant.
04 - Pour the heavy cream into the skillet and bring to a gentle simmer. Add 3/4 cup Parmesan cheese, mozzarella, salt, black pepper, dried thyme, and nutmeg. Stir continuously for 2 to 3 minutes until the cheeses have melted and the sauce thickens slightly.
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 1/4 cup grated Parmesan, and olive oil. Mix until the breadcrumbs are evenly moistened, then sprinkle the topping uniformly over the casserole.
07 - Bake for 20 to 25 minutes until the casserole is bubbling and the topping is golden brown. Allow to cool for 5 minutes before serving.