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Preheat oven to 200C/180C fan-forced. Lightly grease a 6cm deep, 15cm x 24cm (base) ovenproof dish.
Melt butter in a frying pan over medium heat. Add onion. Cook for 4 minutes or until soft. Remove from heat. Set aside. Slice potatoes into 5mm-thick rounds. Pour cream into a jug. Add nutmeg, and salt and pepper. Whisk with a fork to combine.
Arrange a layer of potatoes over base of prepared dish. Top with a layer of onion. Drizzle with a little cream mixture. Repeat layers until all ingredients have been used.
Cover dish tightly with foil. Bake for 30 to 40 minutes or until potatoes are just tender. Remove foil. Cook for a further 30 minutes or until top is golden.