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Preheat the oven to 400°F. Butter an 8x8-inch baking dish or 2-quart gratin dish and set it on a sheet pan lined with aluminum foil to catch drips.
Melt butter in a large pot over medium heat. Add garlic and shallot; cook, stirring frequently until softened, 3 to 4 minutes. Stir in potatoes and cook, stirring frequently, until just beginning to soften, about 5 minutes. Add milk, salt and nutmeg; cook, stirring frequently, until the mixture begins to thicken slightly and the potatoes are slightly tender, but not fully cooked, about 10 minutes. Stir in kale, stirring until it just wilts. Remove from heat and stir in cream. Transfer the mixture to the baking dish and smooth the top. Bake until the casserole is bubbling and browned and potatoes are very tender when pierced with the tip of a paring knife, 35 to 40 minutes. Cool at least 10 minutes before serving.