1. Melt the butter in a large pot over medium heat, then cook the onion until softened.

2. Stir in the garlic and cook for about 30 seconds until fragrant.

3. Add the potatoes, chicken broth, salt, black pepper, and nutmeg, then bring everything to a boil.

4. Reduce the heat and simmer until the potatoes are very tender.

5. Lightly mash some of the potatoes in the pot to thicken the soup while leaving some chunks for texture.

6. Stir in the heavy cream and let the soup return to a gentle simmer.

7. In a bowl, whisk together the flour, baking powder, and salt for the dumplings.

8. Add the egg and milk, then stir just until a soft batter forms.

9. Drop spoonfuls of dumpling batter into the simmering soup.

10. Cover the pot and cook until the dumplings are puffed and cooked through.

11. Stir gently, then top with parsley and bacon bits before serving.