Melt butter in a large pot over medium heat. Add your chopped onion and cook for about 3 minutes until it starts getting soft, stirring occasionally. You'll hear it sizzle and smell that buttery onion aroma—that's exactly what you want.
Toss in the minced garlic and cook for another minute. Add your sliced mushrooms next, stirring everything together so the mushrooms get coated in that buttery mixture. They'll release moisture pretty quickly, which is totally normal and actually adds flavor.
Once the mushrooms look a little golden and have released their liquid (about 5-6 minutes), sprinkle the flour over everything. Stir constantly for 2 minutes—this thickens up the broth later and makes it silky smooth. Don't skip this step.
Pour in the vegetable broth slowly while stirring to avoid lumps. Add the dried thyme, salt, pepper, and nutmeg right now. Bring everything to a gentle simmer and let it bubble away for about 10 minutes.
Once it's simmered, it's time to blend. I use an immersion blender right in the pot because honestly, there's no cleanup that way. Blend until you get that smooth, velvety texture—about 2-3 minutes of blending does it for me.
Pour in the heavy cream and stir well, then let it simmer for another 3-4 minutes without boiling hard. The creamy mushroom soup recipe should be thick but still pourable. Taste it now and add more salt or pepper if it needs it.
Stir in the shredded cheese and let it melt completely, about 1 minute. Ladle into bowls and serve hot—drizzle with a little extra cream if you're feeling fancy. This mushroom soup recipe is best enjoyed fresh, but it also reheats beautifully.