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In a small bowl, soak 1 cup small tapioca pearls in 2 ½ cups of milk. Stir, and place in the refrigerator for 3 hours.
After letting the tapioca soak, pour the tapioca and milk mixture into a medium saucepan. Add 1 ½ cups eggnog, ¼ cup sugar, salt, cinnamon, and nutmeg.
Heat over medium heat, stirring frequently to avoid scalding the milk. When the mixture almost reaches a boil, reduce the heat to maintain a low simmer. Simmer for 10-15 minutes, stirring constantly until the tapioca thickens.
Taste-test the tapioca to ensure the pearls are soft. If still chewy, cook for an additional 5 minutes.
Once the tapioca is cooked, remove from heat, stir in vanilla, and let cool for 15 minutes.
While cooling, beat egg whites with 1 tablespoon sugar until stiff peaks form. Fold the egg whites into the cooled tapioca.
Chill in the refrigerator for 4 hours or serve warm. Top with whipped cream and a sprinkle of ground nutmeg.