Step 3
Meanwhile, melt butter in large saucepan on low heat. Add flour and nutmeg; cook and stir 2 min. or until hot and bubbly. Gradually stir in milk; cook and stir on medium heat 3 to 5 min. or until mixture comes to boil and thickens. Add 2 cups cheddar; cook and stir 2 min. or until completely melted.