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Preheat oven to 400F. Cook the cauliflower florets in a steam basket for 10 minutes (or boil them for 10 minutes if you don’t have a steam basket)*. Drain and put aside.
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In a saucepan, sauté the onions and garlic in olive oil a few minutes (make sure it does not get brown), add milk, flour, egg, nutmeg, cayenne pepper (if desired), salt and pepper.
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Whisk until a smooth creamy sauce is formed, it should only take a about 5 minutes. Add ¾ cup of parmesan and mix well. Toss in the cooked cauliflower florets and coat them well with this sauce.
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Transfer it into a baking dish (I like to line mine with some parchment paper to avoid long scrubbing jobs), cover with a lid or a sheet of foil, and bake in the oven on the middle rack for 30 minutes, covered.
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Remove the dish from the oven, spread the shredded cheddar on top and broil for about 5 minutes or until the cheese melts and gets golden.