Prep the oven and pan: Preheat the oven to 400°F (200°C). Lightly grease a 9x13-inch baking dish or similar casserole dish.
Par-cook the cauliflower: Bring a large pot of salted water to a boil.
Add the cauliflower florets and cook for 3–4 minutes until just crisp-tender. Drain well, then pat dry with paper towels to remove excess moisture. This helps avoid a watery gratin.
Sauté aromatics: In a medium saucepan over medium heat, melt the butter.
Add the minced shallot and cook 2–3 minutes until soft. Stir in the garlic and cook 30 seconds until fragrant.
Make the sauce base: Pour in the heavy cream and warm gently. Add the cream cheese and whisk until smooth and melted.
Keep the heat low to avoid scorching.
Add the cheeses and seasonings: Stir in 1 cup cheddar and 1/4 cup Parmesan until melted and silky. Add Dijon, nutmeg, salt, pepper, and smoked paprika if using. Taste and adjust seasoning.
Combine: Place the drained cauliflower in the baking dish.
Pour the cheese sauce over and gently toss to coat evenly.
Top and bake: Sprinkle the remaining 1/2 cup cheddar and 1/4 cup Parmesan over the top. Bake 18–22 minutes, until bubbling around the edges.
Broil for color (optional): Broil 1–2 minutes to get a golden, slightly crisp top. Watch closely so it doesn’t burn.
Rest and serve: Let sit 5–10 minutes to set.
Garnish with parsley or chives. Serve warm.