1. Preheat the oven to 400°F. Line a baking sheet with parchment paper.

2. Place 1 cup water and the butter in a medium saucepan over medium-high heat and bring to a boil. Then reduce the heat to low and add the flour, salt, cayenne, and nutmeg. Cook the mixture for 15 to 20 minutes, stirring constantly, until it turns into a thick paste and no longer sticks to the sides of the pan.

3. Transfer the batter to the bowl of an electric mixer fitted with the paddle attachment. Mix at low speed, incorporating the eggs one at a time. Do not add an egg until the previous one is completely incorporated.

4. Add the cream to the batter while the mixer is running. Then stop the mixer and gently stir in the grated Gruyère with a spatula, making sure not to deflate the dough.

5. Fit a pastry bag with a #5 or 1/2 inch star tip, and fill it with the dough. Pipe 1-inch rounds of the dough onto the prepared baking sheet. Wet your finger and smooth out the top of the gougères. Bake for 10 to 15 minutes, until golden brown.

6. Remove from the oven and sprinkle grated Gruyère on top if desired. Arrange on a platter and serve warm.