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Combine potatoes, broth, and salt in a multi-functional pressure cooker (such as Instant Pot). Close and lock the lid. Select high pressure according to manufacturer's instructions; set the timer for 1 minute. Allow 10 to 15 minutes for pressure to build.
Meanwhile, set an oven rack about 6 inches from the heat source and preheat the oven's broiler.
Release pressure carefully using the quick-release method according to manufacturer's instructions, about 5 minutes. Unlock and remove the lid. Carefully transfer potatoes to a deep 8-inch square baking dish.
Combine 1 ½ cups Cheddar cheese, cream, garlic powder, pepper, and nutmeg in the pressure cooker with the remaining liquid; select Sauté function and cook until smooth and creamy, about 5 minutes.
Pour sauce evenly over potatoes and sprinkle with remaining ½ cup Cheddar cheese.
Broil in the preheated oven until cheese is golden, about 5 minutes.