Preheat the oven to 425° degrees.
Slice the potatoes as thinly as possible, about ⅛ inch or less, using a mandoline slicer or a sharp knife.
Rub the bottom and sides of an 8x8 (or similar sized) baking dish with softened butter, then place a single layer of potatoes on the bottom.
Sprinkle lightly with salt and pepper, and then with scant layer of grated cheese. Repeat with layers of potato, salt, pepper and cheese until you’ve used up all the potatoes and cheese, making sure cheese is the final layer on top.
Pour heavy cream over the potatoes, then use your fingers to gently press out any air pockets. Freshly grate nutmeg over top, then cover with panko breadcrumbs.
Cover with foil and bake for 20 minutes, then lower the oven to 350° and bake for an additional 30 minutes.
Remove the foil and or until the top is golden brown and a knife can be easily inserted in the center, indicating that no raw pieces of potato remain. If the potatoes are still underdone and the top is getting too brown, cover with foil for the remainder of cooking time.
Allow the gratin to cool down for at least 10 minutes before cutting. Garnish with chopped fresh chives if desired.