Preheat the oven to 375°F (190°C) and grease a 2-quart baking dish with butter.
Place cubed potatoes in a large pot of salted water. Bring to a boil and cook for 8-10 minutes until tender but still firm. Drain thoroughly.
In a medium saucepan, melt 3 tablespoons of butter over medium heat. Whisk in the flour and cook for 2 minutes to form a light roux.
Gradually whisk in the milk and heavy cream. Continue whisking until the mixture thickens and reaches a simmer.
Remove from heat and stir in 1 1/2 cups of the shredded cheddar cheese, salt, white pepper, and nutmeg until the cheese is completely melted.
Gently fold the parboiled potatoes into the cheese sauce until evenly coated.
Transfer the mixture to the prepared baking dish. Top with the remaining 1/2 cup of cheese.
Melt the remaining 1 tablespoon of butter and toss with the breadcrumbs. Sprinkle the breadcrumbs over the top of the casserole.
Bake for 25 to 30 minutes, or until the sauce is bubbling and the breadcrumb topping is golden brown.