Preheat Oven to 425 Degrees Fahrenheit

In a skillet, cook the bacon over medium heat

Place cooked bacon on a plate lined with paper towels to absorb the extra grease. Chop in little pieces and cool

In a medium saucepan, cook the water, nutmeg, salt, sugar and butter until the liquid comes to a simmer. Lower the heat

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

Remove from heat and add the Gruyere cheese and bacon. Stir until combined and cheese melts

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

Add the eggs one by one beating well after each addition

Line 2 baking sheets with parchment paper or silicone mats

Use an ice cream scoop to shape the dough into balls. You can also shape them by hand

Sprinkle parmesan cheese on top of each ball

Bake for around 20 minutes or until the Gougères are puffed up and golden