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 rolling boil. Add the trimmed and halved Brussels sprouts, blanching for 3 to 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 to 4 minutes until translucent and softened. 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 grated Parmesan, shredded mozzarella, salt, black pepper, dried thyme, and ground nutmeg. Stir continuously for 2 to 3 minutes until all cheese has melted and the sauce coats the back of a spoon.
05 - Fold the blanched Brussels sprouts into the creamy sauce, ensuring even coverage. Transfer the entire mixture to the prepared baking dish, spreading it into an even layer.
06 - In a small bowl, combine the panko breadcrumbs, 1/4 cup grated Parmesan, and olive oil. Toss until the breadcrumbs are evenly coated. Sprinkle the mixture uniformly over the casserole.
07 - Bake on the center rack for 20 to 25 minutes until the sauce is bubbling and the topping is a deep golden brown. Allow the casserole to rest for 5 minutes before serving.