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Step 1
Heat cream in a small saucepan over medium heat until just simmering. Add two-thirds of the cheese; stir until melted. Stir in nutmeg and the pepper. Remove from heat; cover to keep warm.
Step 2
Preheat oven to 400 degrees. Butter an 8-inch square baking dish; set aside. Bring a large pot of water to a boil; add the salt. Add half the gnocchi; when they rise to the top (after about 2 minutes), continue to cook until tender, about 15 seconds more. Transfer gnocchi with a slotted spoon to buttered dish. Repeat process with remaining gnocchi.
Step 3
Pour cheese sauce over gnocchi, and gently toss. Sprinkle the remaining cheese on top. Bake gnocchi until golden brown, about 25 minutes