In a large mixing bowl, cream together butter and sugar until fluffy.

Beat in egg yolks until combined.

Add eggnog.

Whisk together flour, baking powder & nutmeg; add to butter mixture beating well until thoroughly combined.

Refrigerate dough for 2 hours or until firm.

For topping, combine colored sugar and cinnamon in a bowl on on a dish.

Roll dough into 1 inch diameter balls; roll in topping mixture.

Place 2 inches apart on a lightly greased cookie sheet.

Bake in a 400° ove for 8 to 10 minutes or until cookies are set.

Place on a cooling rack.

ENJOY!