1. Fill large pot one-quarter full with water and bring to boil. Place potatoes in a steamer, cover and cook over pot of boiling water for 8 minutes or until potatoes are tender. Set aside.
2. Meanwhile, rub inside of fondue pot with cut sides of garlic. Add white wine and heat over medium heat for 3 to 5 minutes or until hot. Mix the three cheeses with flour.
3. Reduce heat to low, then add cheese mixture a little at a time, mixing with a wooden spoon, after each addition until mixture becomes smooth and creamy.
4. Stir in nutmeg. Serve fondue with potatoes, Serrano ham slices, and bread cubes. Garnish as desired with bacon, green onion, and red pepper.

TIP: To increase vegetable choices, add Brussel sprouts to steamer 2 minutes after potatoes begin cooking, and white pearl onions for final 2 minutes of cooking.