Scalloped Potatoes with Porcini and Bacon

These are amazing!  I couldn't find Porcini Mushrooms so just cooked regular ones.  I only have 1% milk in the house so I didn't use the 2% suggested, I also only used a 1/2 cup whipping cream and topped it up with milk to make 1 cup.

1 pkg (14g) dried porcini mushrooms, optional
6 strips bacon, thinly sliced (or more if you wish)
1 small onion, diced
 2 garlic cloves, minced
2 lbs (1kg) potatoes, preferably Yukon Gold
2 cups milk, 2% or homogenized
1 cup whipping cream
Pinch of nutmeg
Salt and pepper
1 cup coarsely grated Gruyere cheese (try smoked for a different flavour)

1. Preheat oven to 350F.
2. Butter a casserole that measures about 9 inches square.  Place mushrooms in a small bowl.  Cover mushrooms with about 1/2 cup boiling water.  Let stand while preparing ingredients.
3. In a large frying pan (I prefer cast iron), cook bacon over medium heat until it starts to crisp, about 5 minutes.  Add onion and continue to cook until bacon is crisp and onion is tender, about 5 more minutes.  Add garlic and cook about 30 seconds just until fragrant (be careful not to burn it as it will get bitter if you do).  Strain mushrooms over a bowl but don't discard liquid.  Squeeze out any liquid from mushrooms into bowl.  Chop mushrooms and stir into bacon mixture.
4. Peel potatoes and slice as thinly as possible, no thicker than 1/4 inch.  Place milk, cream and nutmeg in a large wide pan.  Gradually add mushroom liquid, so that any grit at bottom of bowl doesn't get added.  Over medium heat, bring to a simmer.  Add potatoes to simmering milk mixture.  Stir.  Cook just until almost fork tender, about 10 minutes.
5. Using a slotted spoon, remove and spread about half the potatoes into prepared casserole.  Topp with half the bacon mixture.  Lightly season with salt and pepper.  Spoon remaining potatoes over top.  Repeat with bacon mixture and seasonings.  Carefully pour milk mixture over top, to evenly distribute.  Bake, covered 30 minutes.  Uncover, sprinkle with cheese and continue to bake until golden and bubbling, about 20 to 30 minutes.  Let stand 15 minutes before serving.

Serves 8