In a large pot, heat the olive oil over medium heat. Add the chopped onion and sauté for about 5 minutes until translucent. Then add the minced garlic and cook for 1 more minute until fragrant.

Add the diced butternut squash to the pot and stir to combine with the onions and garlic. Cook for about 10 minutes, allowing the squash to soften.

Pour in the vegetable broth, dried thyme, ground nutmeg, salt, and pepper. Bring to a gentle boil, then reduce the heat and let it simmer for 15 minutes, or until the squash is fork-tender.

Once the squash is tender, use an immersion blender to puree the soup until smooth. You can also transfer it to a blender in batches if you don't have an immersion blender.

Stir in the gnocchi and cook according to the package instructions, usually around 2-3 minutes. Finally, add the coconut milk or heavy cream to achieve that creamy, dreamy consistency. Taste and adjust seasoning if needed.

Ladle the soup into bowls, garnish with fresh parsley, and enjoy your Savory Butternut Squash Gnocchi Soup with crusty bread!