1. Cut the ham into 1/2-in. Or slightly smaller cubes. There should be slightly more then 2 1/2 cups. Set aside. 2. Heat 2 tbsp of butter in a saucepan and add the flour, stirring with a wire whisk. When blended, add the milk, stirring rapidly with the whisk. Add the nutmeg. Bring to a boil and let cook, stirring occasionally, about 5 min. 3. Meanwhile, heat the remaining butter in a skillet and add the ham. Cook briefly, stirring. Add the shallots and cook briefly, stirring. Stir in the sherry and heat through. 4. Add the cream sauce to the skillet and turn off the heat. Stir well to blend. 5. Spoon the ham in cream sauce over the toast.
