Beat 1/2 cup sugar and egg yolks; add 1/4 teaspoon salt.
Stir into milk slowly.
Cook in double boiler until mixture coats silver spoon, stirring constantly.
Place in pan of cold water to cool.
Beat egg whites and dash of salt until stiff peaks form.
Add remain- ing sugar.
Add egg white mixture and vanilla to milk mixture.
Chill for 4 hours.
Spoon lightly in punch cups; sprinkle with nutmeg.