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Preheat the oven to 350°F.
Melt the butter in a large skillet over medium-high heat. Add the onions and cook, stirring occasionally, until softened, about 10 minutes. Add the wine and continue to cook for another 5 minutes until the onions are deeply caramelized.
Add the garlic and thyme, then season with salt and pepper. Cook for another 2 minutes, then remove from the heat.
Butter a 9×13 inch casserole dish. In a large glass measuring cup, combine the cream, milk, cayenne, salt, and pepper. Add the Gruyere cheese. Pour ⅓ of the milk mixture into the bottom of the baking dish. Layer in ⅓ of the potatoes and ½ of the onions. Add another ⅓ of the milk mixture, then another ⅓ of the potatoes, and the remaining onions. Add the remaining potatoes and pour over the last of the milk mixture, ensuring the potatoes are in an even layer.
Cover and bake for 1 hour 45 minutes to 2 hours. Remove the foil and top with cheddar cheese. Bake for another 20 minutes, until the cheese is golden and melty. Serve warm, topped with fresh thyme.