In a small skillet, heat the olive oil over medium heat and add the chopped shallot. Cook for 5 minutes, then add the water and baby spinach and bring to a boil. Reduce to low heat and cook until spinach is wilted, about 5 minutes.
Add the eggs, milk, cheese, nutmeg, salt and pepper to a Magic Bullet cup and blend.
Add a little spinach to each filo cup and set on a baking sheet. Pour the egg batter over the top and sprinkle with cheddar cheese if desired.