Boil milk with bay leaf in saucepan. Take care it does not boil over. Preheat oven to 325 degrees. Add 3 T butter, salt, pepper, nutmeg,cream, and potatoes to the hot milk. Simmer, stirring often with a wood spoon to separate potatoes. Cook 20 minutes or until tender. Remove from heat. Grease an au gratin dish or cassarole dish with remaining 1 T of butter. Rub dish with cut piece of garlic. Pour in potato mixture and sprinkle with grated swiss cheese. Bake for 40 to 50 minutes. If surface of potato mixture is not browned to your satisfaction, place under broiler for about 3 minutes. Let cool 5 minutes before serving.