Melt butter in a large skillet over medium heat. Add shrimp and cook until pink and opaque, about 3-5 minutes.
Remove shrimp from skillet and set aside. Add sherry to the skillet and bring to a simmer, scraping up any browned bits from the bottom.
In a small bowl, whisk together flour and heavy cream until smooth. Pour into the skillet and cook, stirring constantly, until the sauce thickens, about 2-3 minutes.
Stir in nutmeg, salt, and cayenne pepper. Return shrimp to the skillet and heat through. Serve immediately over rice or toast.
Notes
Enjoy this classic Shrimp Newburg recipe as a delightful appetizer or main course. Garnish with fresh parsley for a touch of elegance.