In a small saucepan, combine the milk, cream, sugar and nutmeg.

Split the vanilla bean lengthwise and scrape the seeds into the milk mixture.

Add the vanilla pod to the milk mixture and bring to a simmer over medium low heat.

Remove from the heat and set aside to steep for about 20 minutes.

Return to a simmer over medium heat.

After the mixture is hot, remove a small amount, whisk into egg yolks, then return the egg yolk mixture to the milk mixture.

Cook, stirring constantly, until slightly thickened, about 5 minutes.

Remove from the heat, add the chocolate, and let sit for a few seconds, until the chocolate melts.

Whisk to combine, then pour into mugs through a fine mesh sieve.

Top with whipped cream and nutmeg if desired.

Serve immediately.

*This recipe brought to you courtesy of Pearl Bakery, Portland, Oregon.*