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Stir together eggs, milk and 1/3 cup sugar in a large heavy saucepan. Cook and stir constantly over medium heat until mixture coats a metal spoon. Remove from heat.
Cool quickly by placing the pan in a sink or bowl of ice water, stirring every 1 to 2 minutes.
Stir in rum, bourbon and vanilla.
Chill 4-24 hours.
AT SERVING TIME: Whip cream and 2 tablespoons of sugar until soft peaks form.
Transfer chilled egg mixture to a punch bowl and fold in whipped cream mixture.
Top each serving with whipped cream and sprinkle with nutmeg.