Cook and stir onion and garlic in margarine until tender.
Beat onion mixture, cream cheese, cottage cheese, salt and pepper with electric mixer on medium speed until well blended. Add eggs, 1 at a time, mixing well after each addition. Blend in spinach.
Pour cheese mixture into greased 9-inch square baking pan. Sprinkle with paprika and nutmeg; cover.
Bake at 325°F for 30 minutes; uncover. Bake an additional 15 minutes.