Preheat oven to 350. Grease a 1 1/3 quart gratin dish with 1 teaspoon butter (I melt and brush the butter on).
Combine all ingredients except the potatoes and cheese in a sauce pan. Bring to boil and simmer until liquid is reduced to 2 cups (about 10 minutes).
Slice potatoes in food processor (or using a mandolin) about 1/8 inch thick.
Add the potatoes to the broth and simmer for 5 minutes. Remove the garlic and bay leaves. Put potatoes and liquid in gratin dish and dot with remaining butter (again with the brush for me).
Bake for 40 minutes, basting with liquid in pan occasionally. Sprinkle the cheese on top and bake for another 20 – 25 minutes, until golden and crusty.