GRUYèRE FONDUE WITH CARAMELIZED SHALLOTS

Steps:

• Melt butter in heavy medium skillet over medium heat. Add thinly sliced shallots and sauté 3 minutes. Reduce heat to low; sprinkle shallots with sugar, salt and pepper. Sauté until shallots are caramelized, about 15 minutes. Transfer shallots to small bowl. Add 1 1/2 cups wine to skillet; boil 1 minute.
• Pour wine into heavy medium saucepan; set over medium-low heat. Toss cheese with flour in medium bowl to coat. Add half of caramelized shallots to wine; add cheese mixture by handfuls, stirring until cheese melts and is smooth before adding more. Thin with more wine if mixture is too thick. Season with nutmeg, salt and pepper.
• Transfer cheese mixture to fondue pot. Set pot over candle or canned heat burner. Top fondue with remaining caramelized shallots. Serve with bread cubes.