Preheat oven to 375˚F.
Grease a 9-inch baking dish with a little butter. Set aside.
Prepare the cream cheese mixture by combining cream cheese, milk, basil, and ground nutmeg in a bowl. Set aside.
Layer half of the zucchini slices on the bottom of the baking dish.
Sprinkle with a bit of salt and pepper.
Add a layer of sliced tomatoes over the zucchini slices.
Sprinkle with half of the garlic and half of the fresh basil.
Add a layer of HALF of the cream cheese blend over the tomatoes; sprinkle with half of the shredded Italian cheese.
Repeat one more layer of zucchini slices; add a bit of salt and pepper.
Repeat one more layer of tomato slices; add the rest of the garlic and fresh basil.
Spread a layer of the remaining cream cheese mixture and sprinkle the rest of the shredded Italian cheese.
Dot with slices of butter.
Bake for 22 to 25 minutes, or until mixture is bubbly, browned, and veggies are tender.
Remove from oven and let stand 10 minutes.
Garnish with fresh basil; cut and serve.