Delicate creamed pearl onions in a velvety white sauce are a refined, vegetarian family holiday side dish. This classic accompaniment adds elegant richness to any holiday spread.
Bring a large pot of water to a boil over medium-high heat. Add the pearl onions and simmer for 2 minutes, then immediately transfer them to an ice water bath to stop cooking.
Peel the onions carefully, ensuring the skins are removed without damaging the tender onion flesh.
In a skillet, melt the butter over medium heat. Whisk in the flour and cook for about 2 minutes, stirring constantly, until the mixture is smooth and pale golden.
Gradually whisk in the milk and cream, stirring continuously. Bring to a gentle simmer; cook for 4–5 minutes until the sauce thickens and coats the back of a spoon.
Add the peeled onions to the sauce, stir gently, and season with salt, black pepper, and nutmeg. Simmer for 10–12 minutes over low heat until the onions are tender and the sauce is velvety. Serve warm.