80 white pearl onions, unpeeled
2 oz. applewood-smoked bacon, cut into small dice
1 cup heavy cream
1/4 tsp. nutmeg, grated
2 tbs. sherry
1/2 bunch chives, cut into 1/2-inch batons
In a large pot of salted boiling water, blanch the pearl onions for about 3 minutes. Remove from the water, shock in a bowl of ice water, and drain. Peel onions, leaving a little of the root end intact.
In a medium saucepan, cook the bacon until crisp. Remove the bacon, and drain on a paper towel. Leave 2 tablespoons of the bacon fat in the pan, and add the pearl onions, heavy cream, and nutmeg. Season to taste with kosher salt.
Cover the onions and cream with a cartouche (a circular piece of parchment paper with a 1-inch-diameter hole in the center that will fit on top of the saucepot).
Cook the pearl onions on medium heat until the cream has reduced by half and the onions are cooked through. Stir in the sherry.
Garnish with the bacon and chives.