Preheat your oven to 350°F, then grease a 9×13 casserole dish so it’s ready to go.
In a large skillet, melt 3 tablespoons of butter and add mushrooms, onion, minced garlic, salt, pepper, and nutmeg.
Sauté on medium heat for 8-10 minutes until the onions are translucent and the mushrooms are soft.
Add the chicken broth, cream cheese, and heavy whipping cream, stirring until the cream cheese melts and everything comes together. Stir in the cheddar and mozzarella, then let the mixture simmer on medium-high with the lid off until it reduces and thickens - about 25 minutes. If your stovetop runs cooler and it’s still thin, just keep simmering a few extra minutes. If you prefer a smoother texture, you can blend the mushrooms with an immersion blender, once the sauce has thickened While the sauce is cooking down, line a baking sheet with parchment. Scatter the shredded cheese, minced onion, Parmesan, and Italian seasoning evenly across the sheet.
Bake for 8–12 minutes, just until the cheese melts and gets nicely golden. It’ll come out as one big crispy sheet.
Let the cheese sheet cool completely, then break it into small pieces. Lay them on paper towels to soak up any extra oil—they’ll crisp up even more as they cool.
In a greased 13 X 9 baking dish, add 1 ½ cans of the green beans (drained), then add the mushroom soup mixture and sprinkle ¾ cup of shredded cheddar cheese on top.
Add the rest of the green beans, then top with the shredded mozzarella cheese.
Bake the casserole for 25 minutes, then carefully remove it from the oven. Add the crispy cheese topping, and return it to the oven for about 5 minutes—just long enough to warm the topping slightly without melting it.
Allow to sit for 5 minutes before serving, then dig in! Enjoy!