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Preheat Oven to 425 Degrees Fahrenheit
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In a skillet, cook the bacon over medium heat
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Place cooked bacon on a plate lined with paper towels to absorb the extra grease. Chop in little pieces and cool
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In a medium saucepan, cook the water, nutmeg, salt, sugar and butter until the liquid comes to a simmer. Lower the heat
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Quickly add all the flour at once and stir with a wooden spoon until the flour is no longer visible. Keep stirring until the dough detaches from the sides. About 2 minutes
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Remove from heat and add the Gruyere cheese and bacon. Stir until combined and cheese melts
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Add the dough to the mixer fitted with a paddle attachment. Mix on medium speed for around 2 minutes or until the dough cools off
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Add the eggs one by one beating well after each addition
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Line 2 baking sheets with parchment paper or silicone mats
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Use an ice cream scoop to shape the dough into balls. You can also shape them by hand
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Sprinkle parmesan cheese on top of each ball
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Bake for around 20 minutes or until the Gougères are puffed up and golden