Place a rack in the center of the oven and preheat the oven to 350°F. Coat an 8x8-inch baking dish with nonstick spray.
Melt the butter in a large skillet over medium heat. Add the onion, salt, and pepper and cook, stirring regularly, until softened, about 6 minutes. Add the garlic and frozen vegetables and cook for 2 to 3 minutes, until starting to soften.
Sprinkle the flour over the vegetable mixture and cook, stirring, until toasty golden, and dry, about 1 minute.
While stirring, slowly pour in the broth, breaking up any clumps of flour and scraping browned bits off the bottom of the pan.
Increase the heat to a simmer. Let simmer 1 minute, then turn off the heat. Stir in the milk and 1 cup of cheese.
Transfer the mixture to the prepared baking dish.
Make the topping: In a small bowl, melt the butter. Stir in the panko and salt. Sprinkle the topping and the remaining ¼ cup cheese over the casserole.
Bake for 15 to 20 minutes, until the top is golden-brown. Let cool for at least 5 minutes before serving.
Notes
TO STORE: Refrigerate leftovers wrapped in the casserole dish or in an airtight container for up to 4 days.
TO REHEAT: Warm small portions of leftovers in the microwave, or pop the casserole dish back in a 350ºF oven until the casserole is warmed through.
TO FREEZE: I do not recommend freezing, but if you have leftovers that you won’t eat within 4 days, you can transfer them to an airtight container and store for up to 6 months. Thaw in the refrigerator and drain off any excess liquid before reheating.