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Preheat oven to 375 degrees and butter a popover pan. Place the pan on a cookie sheet to prevent spillover.
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Lay 3 slices of ham in each cup, offsetting the slices so they form the petals of a flower. Press the slices into each cup, pressing them against the sides. The ham slices should be intact with no holes to avoid the filling leaking out.
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In a medium sauté pan over medium heat, heat the olive oil. Add the onion and sauté until the onion is translucent and just starting to brown. Add the spinach and Piquillo peppers and sauté for only a minute or two until the spinach is just wilted. Set aside.
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Divide the goat cheese evenly among the ham filled cups.
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In a medium bowl beat the eggs, half and half, salt, nutmeg and parmesan cheese.
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Gently spoon the egg mixture into the cups, filling them just below the top of the pan. Do not overfill.
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Bake the ham baskets for 15 minutes, top with the shredded cheddar cheese and bake for 5 more minutes until the cheese is melted.
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Let them stand for 10 minutes and remove them from the cups with a small butter knife. They will come out easily. Serve immediately.