Preheat oven to 350 degrees

In a medium sized bowl combine the flour, baking powder, salt and nutmeg together and set aside.

In a mixing bowl whip together the butter, sugar, eggs, rum and vanilla until nice and smooth. Slowly add in the eggnog, then the flour mixture and beat until all the ingredients are mixed together.

Grease and flour a bundt, tube pan or line the bottoms of 2 standard sized loaf pans.  Pour batter into pans and bake for 45 – 60 minutes or until a toothpick inserted in the center comes out clean.

In a small bowl, combine the sugar, rum, and water and stir until blended {about 20 seconds}.

Cool cake for 10 minutes, then remove from pan and place on a cooling rack with Saran wrap or parchment paper below it.  Drizzle glaze over the top.  

Wait about 1/2 an hour before slicing, and serve.