Preheat oven to 450°F.
Make small cut in each package of spinach.
Microwave at HIGH 5 to 6 minutes, turning packages halfway through cooking time.
Meanwhile, grease 8-inch square baking pan.
Place ham slices on bottom of prepared pan, overlapping slightly.
Spread spinach mixture over ham slices.
Make 4 indentations in spinach.
Carefully break 1 egg in each.
Season to taste with salt and black pepper.
Sprinkle with nutmeg.
Bake 1 6 to 19 minutes or until eggs are set.
Remove from oven.
Sprinkle cheese and red pepper over top.
Return to oven and bake 1 to 2 minutes longer or until cheese is melted.