In a medium saucepan over medium low heat, melt the butter. Gently cook onion in hot butter for 3 to 5 minutes; just until tender. Do not let onion brown. Add corn and sprinkle generously with kosher salt. good seasoning at this stage really draws out the flavor of the corn. Stir well, then cook 5 to 7 minutes. Do not let onion or corn brown. Stir in sugar.
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Puree soup in batches, one third at a time, until very smooth. Pour pureed soup through a fine wire strainer set over a bowl, allowing soup to drain through. Return soup to pan. Reheat over medium heat; whisk in grated nutmeg. Taste for seasoning; add salt, pepper, etc. To serve, divide soup among bowls, dust with nutmeg.
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