Preheat oven 300 degrees. In a medium bowl combine flour, baking powder, cinnamon and nutmeg. Mix well with a wire whisk and set aside. In a large bowl, cream sugar and butter with an electric mixer to form a grainy paste. Add eggnog, vanilla and egg yolks and beat at medium until smooth. Add dry ingredients and beat at a low speed just until combined. Do not overmix.
Drop by rounded teaspoons 1 inch apart onto ungreased baking sheet. Sprinkle lightly with nutmeg. Bake 23-25 minutes or until bottoms turn light brown. Transfer to cool, flat surface immediately.
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