Preheat the oven: Heat the oven to 375°F (190°C). Lightly grease a 9-by-13-inch baking dish or similar-sized gratin dish.
Cook the bacon: Add the chopped bacon to a large skillet over medium heat. Cook for about 5–7 minutes, stirring occasionally, until crisp. Transfer the bacon to a paper towel-lined plate, leaving about 1 tablespoon of bacon fat in the skillet.
Cook the onion and garlic: Add the chopped onion to the skillet and cook for 3–4 minutes, until softened. Add the garlic and cook for another 30 seconds.
Add the cabbage: Add the sliced cabbage to the skillet. Toss with the onion and garlic and cook for about 7–10 minutes, stirring occasionally, until the cabbage begins to soften and some of its moisture has cooked away.
Make the creamy sauce: Reduce the heat to low. Add the butter and heavy cream, followed by the Dijon mustard, thyme, black pepper, nutmeg, and salt. Stir well and simmer gently for 2–3 minutes.
Add the cheese and bacon: Stir in 1 cup of the Gruyère until melted and smooth. Add the cooked bacon and stir until evenly distributed throughout the cabbage mixture.
Transfer to the baking dish: Spoon the creamy cabbage mixture into the prepared baking dish and spread it into an even layer.
Add the cheese topping: Sprinkle the remaining ½ cup Gruyère evenly over the top.
Bake: Bake uncovered for approximately 25–30 minutes, until the gratin is bubbling around the edges and the cheese is melted and golden brown.
Brown the top: If you want a deeper golden crust, switch the oven to broil for 1–2 minutes at the end. Watch carefully so the cheese doesn't burn.
Rest and serve: Remove the gratin from the oven and let it rest for 5–10 minutes before serving. This allows the creamy sauce to thicken slightly.