Heat the olive oil in a large skillet over medium-high heat. Add the sliced mushrooms and sauté until they release their moisture and turn golden brown, about 5 to 7 minutes. Stir in the minced garlic and butter, cooking for another 1 to 2 minutes. Season with salt and pepper to taste. Remove from heat and set aside.

Bring a large pot of salted water to a boil. Cook the gnocchi according to the package instructions until they float to the surface, about 2 to 3 minutes. Drain the gnocchi and set aside.

In a medium saucepan, melt the butter over medium heat. Add the minced garlic and cook until fragrant, about 1 minute. Pour in the heavy cream and broth, stirring to combine, then bring to a gentle simmer. Gradually whisk in the grated Parmesan cheese until fully melted and the sauce is smooth. Add a pinch of nutmeg if desired. Season with salt and pepper to taste.

Add the cooked gnocchi and sautéed mushrooms to the saucepan with the Parmesan cream sauce. Toss gently to coat everything evenly. Cook over low heat for an additional 2 to 3 minutes to ensure the gnocchi is heated through and well coated with the sauce.

Serve the mushroom gnocchi hot, garnished with freshly chopped parsley for a burst of color and freshness. Sprinkle extra grated Parmesan on top if desired. For a balanced meal, pair with a simple green salad dressed with a light vinaigrette. Serve alongside crusty bread to soak up any remaining sauce.