In a large saucepan, melt 1 Tbsp of butter on medium heat. Add the chopped onions and cook 2 to 3 minutes until translucent.
While the onion is cooking, remove the kernels from the corn. Stand a corn cob vertically over a large, shallow pan (like a roasting pan).
Using a sharp knife, use long, downward strokes of the knife to remove the kernels from the cob. Use the edge of a spoon to scrape the sides of the cob to remove any remaining pulp.
Add the corn to the onions and butter in the saucepan. Add 2/3 cup of water and the remaining 1 Tbsp of butter. Bring to a simmer, reduce heat and cover.
Cook for 10-15 minutes until the corn is tender. Add the sugar, nutmeg, and cream to the corn. Cook, uncovered, for 5-6 minutes, stirring occasionally. Add salt and pepper to taste.