In a saucepan, bring 1 cup water, butter and salt to a boil; remove from heat. Stir in dehydrated potato flakes, milk and nutmeg; set aside.
Preheat oven to 400˚F. Using electric mixer, beat cream cheese until light and fluffy. Beat in sour cream until blended. Fold in mashed potatoes, 1 cup Cheddar, caramelized onions, half of the green onions, garlic, salt and pepper.
Scrape into greased 8-inch square baking dish; smooth top. Sprinkle with remaining Cheddar. Bake for 20 to 25 minutes or until heated through and golden brown on top. Sprinkle with remaining green onions. Serve warm with assorted crackers and crudités.
· To make caramelized onions: Cook onions in butter with a pinch of salt and sugar in a saucepan set over medium-low heat for 30 to 40 minutes or until golden brown.
· Garnish the dip with crumbled bacon if desired.
· For crudités, try blanched broccoli, cauliflower and asparagus.