01 - Preheat oven to 400°F. Grease a 9x13-inch casserole dish with butter or nonstick spray and set aside.
02 - Bring a large pot of salted water to a rolling boil. Add the trimmed and halved Brussels sprouts, cooking for 3 to 4 minutes until just tender-crisp. Drain thoroughly and set aside.
03 - In a large skillet over medium heat, melt the butter. Add the chopped onion and cook until softened and translucent, about 3 minutes. Stir in the minced garlic and cook for 30 seconds until fragrant.
04 - Sprinkle the flour over the onion and garlic mixture. Stir continuously and cook for 1 to 2 minutes to form a smooth roux, removing any raw flour taste.
05 - Gradually whisk in the whole milk and heavy cream, pouring slowly to prevent lumps. Continue whisking until the sauce thickens and coats the back of a spoon, about 4 minutes. Stir in the Dijon mustard, salt, black pepper, and ground nutmeg until evenly incorporated.
06 - Remove the skillet from heat. Add ¾ cup of the Parmesan cheese and all of the mozzarella cheese, stirring gently until fully melted and the sauce is smooth.
07 - Add the blanched Brussels sprouts to the skillet, tossing to coat evenly in the creamy sauce. Transfer the entire mixture to the prepared casserole dish, spreading into an even layer. Sprinkle the remaining ½ cup Parmesan cheese over the top.
08 - In a small bowl, toss the panko breadcrumbs with olive oil until evenly moistened. Sprinkle the breadcrumb mixture evenly over the casserole surface.
09 - Bake uncovered for 25 to 30 minutes, or until the top is golden brown and the sauce is bubbly around the edges.
10 - Remove from the oven and let rest for 5 minutes to allow the sauce to set. Garnish with chopped fresh parsley and serve hot.