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Preheat oven to 375 degrees. Rub inside of 2-quart gratin or baking dish with cut side of garlic and lightly coat with olive oil or butter. Slice any garlic that remains and toss with potatoes, squash, half of cheese, generous amount of sea salt and pepper, and chopped rosemary, if desired. Arrange potato and squash slices in even layer and continue to layer evenly.
Pour milk over potatoes and squash, and press vegetables down into milk. Place in oven, and bake. After one hour, sprinkle on remaining cheese and bake 30 minutes more, until top is golden and sides crusty. Remove from oven and allow to sit 10 to 15 minutes before serving. Serve hot or warm.