In a large saucepan, combine the eggs, milk and 1/3 cup sugar.

Cook and stir over medium heat until mixture coats a metal spoon.

Remove from heat.

Cool quickly by placing pan in a sink or bowl of ice water and stirring 1 to 2 minutes.

Stir in the vanilla.

Chill 4 to 24 hours.

Before serving, whip the cream and 2 tablespoons sugar until soft peaks form.

Transfer chilled egg mixture to a punch bowl.

Fold in whipped cream mixture and serve at once.

Sprinkle each serving with nutmeg