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Step 1
Position a rack 5 or 6 inches from the broiling element, and preheat the broiler to HIGH.
Step 2
In a medium bowl, stir together the cheddar, mozzarella and parmesan until well combined.
Step 3
In a medium (10-inch) broiler-safe skillet over medium-high heat, bring the milk to a simmer. Add the salt, paprika, mustard powder, chili powder, nutmeg and garlic powder, and cook, whisking constantly, until well incorporated, about 2 minutes.
Step 4
Gently drop in the gnocchi, distributing them evenly throughout the milk mixture. (Some overlap is okay.) Stir to coat and cook, stirring frequently, until the gnocchi are heated through, about 2 minutes. Turn off the heat, but leave the skillet on the burner.
Step 5
Add the American cheese, stirring until it melts and slightly thickens the sauce, followed by the heavy cream and half of the cheddar mixture. Stir, letting the cheese gradually incorporate as it melts in the residual heat.
Step 6
Scatter the remaining cheddar mixture over the top and place the skillet under the broiler for 4 to 5 minutes, or until the cheese is golden brown and bubbling. Let cool for 1 to 2 minutes, garnish with parsley or chives, and serve.