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Melt about ¼ of the butter in a small saucepan over very low heat. Add the shallots and cook gently until translucent, not browned.
Transfer to a blender or food processor and add the remaining butter, herbs, capers, anchovies, nutmeg, and a little pepper. Blend until smooth. In a separate bowl, whisk the egg yolk, mustard, Worcestershire sauce, and vinegar or lemon juice.
Gradually whisk in the herb-butter mixture until it forms a thick, velvety emulsion. Taste and adjust seasoning with salt and pepper.
Reheat gently over low heat just until warm—don’t let it separate.
Serve immediately over steak and a mountain of crispy fries.