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Heat oil in a Dutch oven over medium heat. Add chard stems and cook, stirring often, until softened, 3 to 5 minutes. Stir in chard leaves and cook, stirring constantly, until wilted, about 2 minutes. Cover and cook, stirring once, until tender, about 2 minutes more. Transfer to a colander placed in the sink and press with a wooden spoon to remove excess liquid. Return the chard to the pot, cover and keep warm.
Place garlic and butter in a small saucepan over medium heat and cook until the garlic is fragrant but not browned, about 2 minutes. Whisk in flour and cook until bubbling, about 30 seconds. Add milk, salt, pepper and nutmeg; cook, whisking constantly, until thickened, 1 to 2 minutes. Stir the chard into the sauce and serve immediately.