PREP: Position a rack in the center of the oven and preheat the oven to 375ºF.
COOK: Melt the butter in a large saucepan over medium heat. Add the garlic and allow it to become fragrant while stirring often; 60-75 seconds. Then whisk in the flour and continue to cook and whisk for 1-2 minutes or until the flour starts to brown slightly.
SAUCE: Gradually pour in the milk and then the half and half while you whisk. Add the 1 teaspoon kosher salt, thyme, bouillon, white pepper, and nutmeg, if using. Allow the mixture to grain a simmer and and start to come to a boil. Lower the heat and let cook for 30-60 seconds. Then gradually stir in the ¼ cup of cheese at a time until you’ve add 1 cup. Reserve the other cup for later.
LAYER: Spread the potatoes slices evenly in the baking dish. Pour the sauce over the potatoes. Gently wiggle, or tap the baking dish to let out any air.
BAKE: Cover the dish with foil and bake the potato for 35 minutes.
SPRINKLE: Then, remove the potatoes from the oven, sprinkle the remaining 1 cup of cheese over the potatoes and bake again, uncovered, for 25-30 minutes. If at any point the cheese starts to brown too much, recover with foil and continue baking.
CHECK: Insert a knife in the potatoes, it should go straight through with no resistance. Allow the scalloped potatoes to to cool for several minutes before serving. Top with chopped chives before serving.