Bring large pot of water to boil. Sprinkle breadcrumbs and butter into small skillet and place on medium heat. Once butter melts, stir breadcrumbs around to moisten completely and brown lightly. Remove from heat and set aside. Once bacon is cooked and crisp, remove from skillet onto paper towels to drain. Leave 1 tablespoon bacon grease in pan and melt in 2 tablespoons butter. Grate in garlic cloves and cook 1 minute. Sprinkle in flour and whisk. Cook 1-2 minutes and then whisk in milk slowly to prevent lumps. Add in salt, pepper and nutmeg and reduce heat to low. Pour gnocchi into boiling water and cook until they start to float, 2-3 minutes. While gnocchi is cooking, crumble cooked bacon. Drain gnocchi and stir into sauce. Add in bacon. Pour entire contents into buttered baking dish and sprinkle with toasted bread crumbs. Bake at 350 for 15-20 minutes and serve hot.