In a medium saucepan, over medium-low heat, bring milk, cream, whole cloves, cinnamon sticks, vanilla bean, and nutmeg just to a boil.
In a medium bowl, beat egg yolks and sugar until pale yellow in color and fluffy. Gradually whisk in 1 cup of the hot milk mixture until well blended. Gradually whisk egg and milk mixture back in to the saucepan. Continue to cook and stir over medium-low heat for 3-5 minutes more or until mixture thickens.
Strain eggnog into a large bowl. Cool slightly. Cover and refrigerate overnight to allow the flavors to marry.
Cook's Note: For adults, feel free to add rum, bourbon or brandy.