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Preheat your oven to 400 F degrees.
Melt the butter in a saucepan or skillet over medium heat. Add the garlic and cook for 30 seconds until the garlic is aromatic.
Sprinkle the flour over the garlic/butter then whisk well until combined with the butter. Add the chicken broth and whisk until combined. It should look like a thick paste. Cook for another minute while stirring, then add the heavy cream and whisk until smooth.
Season with salt, pepper and nutmeg. Continue cooking for 2 more minutes until the sauce comes to a simmer and thickens. Remove the saucepan from the heat and set aside.
Start layering. Start with a spreading a couple ladlefuls of the sauce over the bottom of a 9x13 inch baking dish. Spread a third of the sliced potatoes over the sauce in an even layer (see video). Top with more of the sauce to cover the potatoes. Top with a third of the cheddar cheese and then a third of the bacon. You should have enough ingredients for 3 layers of potatoes. Continue layering with potatoes, sauce, cheese, bacon and repeat. Finally sprinkle with half the chives.
Cover with foil and bake for 45 minutes. Uncover and finish baking for for another 45 minutes or until the potatoes are fork tender.
Garnish with remaining chives and serve warm.