03Peel potatoes and cut crosswise into 1/8-inch-thick slices (preferably with an adjustable-blade slicer). Bring potatoes, cream, milk, salt, white pepper, nutmeg, and remaining 1/2 teaspoon garlic to a boil in a 4- to 6-quart heavy pot, stirring once or twice, then remove from heat.
04Transfer half of potatoes to buttered gratin dish with a slotted spoon, spreading evenly. Spread mushrooms evenly over potatoes, then top with remaining potatoes. Pour cooking liquid over potatoes and sprinkle with cheese.
05Bake gratin until top is golden brown and potatoes are tender, 45 to 55 minutes. Let stand 10 minutes before serving.