Peel off any damaged outer layers of Brussels sprouts. Trim the stem to make it flush. Quarter each sprout and score the stem on each quarter with a 1/4-inch-deep "X."
Saute the prosciutto in the butter over medium heat for about 2 minutes. Add the garlic and Brussels sprouts and stir continuously for 2 to 3 minutes. Add the flour and continue stirring for 2 minutes. Add the cream, half-and-half, and sherry. Bring the liquid to a simmer, then reduce the heat and continue simmering for 7 minutes or until the liquid is reduced by 1/3. Stir in the 1 cup of Parmesan, nutmeg, salt, and pepper. Transfer to an ovenproof casserole dish. Cover with remaining 1/2 cup Parmesan. Cover with aluminum foil and bake for 25 minutes. Serve immediately.
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