Preheat oven to 400°F (200°C). Spray a 9x13-inch baking dish with cooking spray.
Thaw frozen spinach, then squeeze it completely dry in a clean towel or cheesecloth.
Melt butter in a large skillet over medium heat. Add onion and cook until softened, about 5-6 minutes.
Add minced garlic and cook 1 minute until fragrant.
Reduce heat to medium-low. Add cream cheese, cottage cheese, salt, pepper, and nutmeg. Stir until melted and smooth, about 2-3 minutes.
Stir in squeezed spinach and half the Parmesan until evenly mixed. Pour in heavy cream and stir until uniform.
Transfer the mixture to the prepared dish and spread even. Top with cheddar cheese, then crushed crackers.
Bake 10-15 minutes until golden and bubbly. Rest 2-3 minutes before serving.