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Add pasta to a pot of boiling salted water. Cook according to instructions and drain when al dente. The pasta should be ready just before your sauce.
While the pasta is cooking, heat the milk and cream in a pot making sure not to allow it to come to a boil.
Melt 7 tablespoons of unsalted butter in a large pot. Add the flour and whisk while it cooks on low heat for 2 to 3 minutes.
Add the hot milk and cream in while whisking and cook until thickened, 2-3 minutes.
Remove from heat and mix in the cheeses, salt, nutmeg, paprika, and pepper.
Melt one or two tablespoons of butter in a pan and mix with the breadcrumbs. Cook over medium heat while stirring until the breadcrumbs are a light golden color. Season with salt and pepper to taste then mix in about three tablespoons of shredded parmesan.
Add the cooked pasta and mix well. Transfer to a baking dish or ramekins and top with the some more cheddar and parmesan and the toasted breadcrumb mixture.
Bake at 375 for about 35 minutes.