We add the minced shallot to the oil and cook over medium-low heat, stirring occasionally, until the shallot is softened. We add the cream, cream cheese, and the grated cheeses and whisk. We continue to whisk and heat until the mixture is smooth and hot. We grate in a little nutmeg using our microplane, thin with a tablespoon more of the cream, and season with salt and pepper. We keep the cheese fondue over low heat while we ready the garnish.
We heat two inches of canola oil in our Dutch oven until it reaches 360° F. We lightly sprinkle the sliced shallot with flour and fry for a minute in the hot oil until golden brown and crispy. We drain with our spider and place on a paper-towel lined plate and sprinkle with salt.
We serve the cheese fondue in a large chafing dish with roasted asparagus, roasted potatoes, bread cubes, and hot giardiniera.