Combine milk, onion, nutmeg and bay leave in small saucepan over medium-high heat and bring to a simmer.
2
Remove from heat, stir and let stand for 15 minutes. Strain and discard solids.
3
Wipe saucepan clean.
4
Melt butter in pan over medium heat and stir in flour cooking for 1 minute until consistency of paste.
5
Slowly add milk mixture back into pan, whisking until blended. Bring to a boil and cook 9 minutes, stirring constantly. Once thickened, remove from heat and add salt and pepper.