Combine first 4 ingredients, beating well. Gradually add milk, stirring constantly. Pour into 6 (6 ounce) custard cups. Sprinkle with nutmeg.
Place custard cups in a large baking pan; pour hot water into pan to a depth of 1 inch. Bake at 325 degrees for 40-45 minutes or until knife inserted halfway between center and edge of cup comes out clean. Remove cups from water and cool. Chill thoroughly.