Preheat oven to 325°F. Grease and flour a 10-inch bundt pan.
In a large mixing bowl, cream together the butter and sugar until light and fluffy.
Add the eggs one at a time, beating well after each addition. Stir in the vanilla extract.
In a separate bowl, combine the flour, baking powder, salt, and nutmeg.
Add the dry ingredients to the butter mixture alternately with the eggnog, beginning and ending with the dry ingredients.
Pour the batter into the prepared bundt pan. Bake for 60-70 minutes, or until a toothpick inserted into the center comes out clean.
Allow the cake to cool in the pan for 10 minutes, then remove from the pan and transfer to a wire rack to cool completely.
In a small bowl, whisk together the powdered sugar and 2 tablespoons of eggnog to make the glaze. Drizzle the glaze over the cooled cake.
Enjoy!