Preheat oven to 375 degrees
Use 2 tsp of the butter to grease a 5-cup soufflé dish
Grate the cheese (should be about 3/4 cup)
Scald the milk without boiling
Melt 3 tbsp of butter in saucepan. Add flour, stirring with wire whisk. Blend until smooth. Gradually add the hot milk, stir rapidly with whisk. Add nutmeg, cayenne, salt and pepper to taste. Cook over moderate heat about 5 minutes, stirring rapidly.
Blend cornstarch with water and add it, stirring briskly.
Remove from heat and beat in the egg yolks. Pour and scrape the mixture into a large mixing bowl. Stir in Parmesan cheese.
Beat egg whites until stiff. Add half the whites to the sauce and fold them in with the whisk. Add the remaining whites and grated Pinnacle cheese. Fold this in with a plastic or rubber spatula until the whites are completely incorporated.
Spoon the mixture into the prepared soufflé dish. Place in the oven and bake 20 minutes. Serve immediately.