In a large bowl, beat together the egg yolks and half a cup of sugar until the mixture turns light in color.
Stir in the bourbon, rum, milk and heavy cream.
In a separate bowl, beat the egg whites with the remaining quarter-cup of sugar until soft peaks form.
Gently fold about one-third of the egg whites into the yolk mixture, reserving the remaining amount.
Divide between 12 punch or tea cups.
Fold more of the egg-white mixture into each cup, if desired.
Top each cup with freshly grated nutmeg.
