Bring a large pot of water to boil.

Sprinkle breadcrumbs and butter into a small skillet and place on medium heat. Once butter melts, stir breadcrumbs around to moisten them completely and brown lightly. Remove from heat and set aside.

Put the bacon into a skillet over medium heat and cook until crispy. Once bacon is cooked and crisp, remove from skillet onto paper towels to drain.

Leave 1 tablespoon of bacon grease in the skillet and melt in 2 tablespoons of butter. Grate in the garlic cloves and cook it for 1 minute. Sprinkle in the flour and whisk. Cook 1-2 minutes and then whisk in milk—do this slowly to prevent lumps. Add in salt, pepper and nutmeg and reduce heat to low.

Preheat oven to 350 F.

Pour gnocchi into the pot of boiling water and cook until they start to float, 2-3 minutes. While gnocchi is cooking, crumble the cooked bacon. Drain gnocchi and stir it into the sauce. Add in the bacon. Pour entire contents into a buttered large oval baking dish and sprinkle with toasted bread crumbs. Bake at 350 F for 15-20 minutes and serve hot.