Stir and dissolve yeast and 1 teaspoon sugar into warm eggnog. Let sit for 5-7 minutes until mixture has formed bubbles and yeast is active.
In the bowl of a stand mixer, whisk together yeast mixture, remaining sugar, and eggs. Attach dough hook to stand mixer.
In a separate bowl, whisk together flour, salt, and nutmeg. Add half of flour mixture to stand mixer. Mix on low speed for about one minute.
Continue to mix on low speed and add softened butter one tablespoon at a time. Add remaining flour. Continue to mix on low speed until dough forms. Increase speed to medium and knead until dough is smooth and no longer sticks to the sides of the bowl.
Transfer dough to a lightly greased (or buttered) large bowl. Cover with plastic wrap and let dough rest at room temperature for about an hour, until dough has doubled in volume.