Peel the potatoes and slice them thinly. Cook them in lightly-salted boiling water for about 10 minutes or until tender. Drain the slices and put them in a gratin dish. Preheat the broiler.

In a small saucepan, mix the Farmers Old Cheddar Cheese cubes, cream, and milk. Warm over low heat, stirring occasionally, until the cheese has melted. Do not let the mixture boil. Remove from the heat and blend in the chives and a little grated nutmeg, and then season moderately with salt and pepper. Pour over the potatoes, and then brown the mixture under the broiler.