2 1/3 cups all-purpose flour

1 Tablespoon baking powder

1/2 teaspoon nutmeg

1/4 teaspoon salt

2/3 cup butter or margarine -- softened

1 1/2 cups granulated sugar

3 egg yolks

1 cup dairy eggnog

3 egg whites

Creamy Eggnog Frosting

Grease and lightly flour two 9x 1 1/2 inch or 8x 1 1/2 inch round baking pans. In a medium mixing bowl stir together flour, baking powder, nutmeg, and salt. Set pans and flour mixture aside.

In a large mixing bowl beat the butter with an electric mixer on medium to high speed about 30 seconds or until softened.

Add the sugar to butter and beat until well combined. Add the egg yolks, one at a time, beating on medium speed after each addition until combined. Alternately add flour mixture and eggnog, beating on low to medium speed after each addition just until combined.

Thoroughly was beaters. In a medium mixing bowl beat egg whites until stiff peaks form (tips stand straight). Gently fold the beaten egg whites into the batter.

Pour the batter into prepared pans. Bake in 350 oven for 25-30 minutes for 9 inch cake pans (30-35 minutes for 8 inch cake pans) or until a wooden toothpick inserted near the center of each cake comes out clean. Cool cakes in pans on wire racks for 10 minutes. Remove cakes from pans and completely cool on the wire racks. Fill and frost with Creamy Eggnog Frosting. Cover and store in the refrigerator for up to 3 days. Let stand at room temperature for 30 minutes before serving. Makes 12 servings.

CREAMY EGGNOG FROSTING: In a medium saucepan combine 2/3 cup granulate sugar, 3 tablespoons all purpose flour, and 1/4 teaspoon ground nutmeg. Whisk in 1 cup dairy eggnog. Cook and stir over medium heat until mixture is thickened and bubbly. Remove from heat. Gradually stir hot mixture into 2 beaten egg yolks. Return mioxture to saucepan. Bring to a gentle boil. Cook and stri for 2 minutes more. Rmove from the heat. Add 1 tablespoon rum (or, add 1 tablespoon milk or eggnog and 1/4 teaspoon rum extract). Pour mixture into a bowl. Cover the surface with clear plastic wrap. Cool to room temperature. Do not stir. In a medium mixing bowl beat 1 cup softened butter (no substitutes) with an electric mixer on medium to high speed about 30 seconds or until fluffy. Add the cooled cooked mixture, one fourth at a time, beating on low speed after each addition until smooth.