Melt the butter in a saucepan over medium heat. Add the onion and cook, stirring often, until onion is softened, about 5 minutes.
Add the spinach and cook, stirring often, until spinach is heated through, about 6 minutes.
Add the flour, garlic, cayenne, nutmeg, and 1/2 tsp salt. Stir until thoroughly combined. Stir in the cream cheese until melted then pour in the half & half and cook while stirring until heated through, about 2 minutes.
Stir in the Parmesan and cook until melted and heated through, about 1 more minute. Season with salt & pepper to taste.
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