Step 1

Preheat the oven to 350 degrees F. Spray a 2 quart baking dish with olive oil spray and set aside.

Step 2

Place the potatoes in a large pot and cover with water. Bring to a boil over medium heat. Reduce the heat and simmer until the potatoes are just tender, about 8 minutes. Drain and set aside to cool.

Step 3

Melt butter in a large saucepan set over medium heat. Add garlic and cook for 30 seconds, then stir in flour until well combined.

Step 4

Slowly whisk in chicken broth, cook for 1 minute, then stir in milk. Whisk until smooth, seasoning with salt, pepper, and nutmeg. Continue cooking for 1-2 minutes, until the sauce thickens. Remove the saucepan from the heat and stir in 1 cup of cheddar cheese until melted.

Step 5

Spread ¼ cup of the sauce over the prepared baking dish. Arrange ⅓ of the sliced potatoes evenly over the sauce. Top with ⅓ of the sauce to cover the potatoes, then sprinkle with ⅓ cup of the cheddar cheese and ⅓ of the bacon. Continue layering two more times in that order with the remaining potatoes, sauce, cheese, and bacon and repeat. Sprinkle the rest of the cheese on top.

Step 6

Cover with foil and bake for 25-30 minutes. Uncover and continue baking for another 5 minutes or until the potatoes are fork tender. Turn the broiler to high and brown the cheese, if desired.

Step 7

Garnish with chives and serve warm.