Place the tofu, cashews, broth, nutritional yeast and nutmeg in a blender and puree until very creamy and smooth, scraping down the sides as needed. Set aside.
Heat the oil in a large skillet over medium heat. Add the shallots and cook until browned, about 10 minutes, stirring often. Add in the thinly sliced garlic and salt and cook another minute or two, taking care not to burn the garlic.
Add in the spinach, a few handfuls at a time, letting it wilt slightly before adding more, until all spinach is in the pan. The spinach should be just wilted and bright green. Stir in the tofu mixture and cook until warmed through, about 2 minutes.
Taste, adding more salt/pepper as needed and serve immediately!
Silken tofu is not the same as firm or extra-firm tofu. You can find silken tofu in either the refrigerator or pantry section of your grocery store.