Prepare your coals: Either light charcoals (recommended) or start a campfire for cooking. Coals will take about 20 minutes to light, a campfire will take up to an hour to burn down to embers. For home cooking, see note*.
To make the batter, crack the eggs into a large mixing bowl and beat vigorously until smooth. Add the milk, and give a quick stir to incorporate. Then add the flour, sugar, salt, and optional nutmeg. Mix together until smooth.
Once the embers or charcoals are ready, set your Dutch oven over the heat to preheat Place the butter in the bottom of the Dutch oven and swirl it around until it melts. Once the butter is completely melted, pour your batter into the Dutch oven.
Cover the Dutch oven with the lid. Place on a small bed of coals, and then cover the lid with additional coals.
After 10 minutes, take a quick peak to check progress. You're looking for the Dutch baby to be puffed up and golden brown in spots. Cook for a few more minutes if needed, and remove from the heat when it's done.
Serve immediately with your toppings of choice.