Melt 8 ounces of the chocolate as directed on package. Beat cream cheese, confectioners’ sugar, nutmeg and extract in large bowl with electric mixer on medium speed mixer until well blended and smooth.
Add melted chocolate; beat until well mixed. Cover. Refrigerate at least 4 hours or until firm.
Shape into 24 (about 3/4-inch) balls. Place on wax paper-lined tray. Refrigerate until ready to dip.
Coat only 12 truffles at a time. Melt 4 ounces of the remaining chocolate in small microwavable bowl on MEDIUM (50% power) 1 1/2 minutes, stirring after 1 minute. Using a fork, dip 1 truffle at a time into the melted chocolate. Tap back of fork 2 or 3 times against edge of dish to allow excess chocolate to drip off. Place truffles on wax paper-lined tray. (If there are any “bald” spots on truffle, cover with melted chocolate that remains on the fork.) Sprinkle truffles with nutmeg. Repeat with remaining 4 ounces chocolate and remaining truffles.
Refrigerate 1 hour or until chocolate is set. Store truffles between layers of wax paper in airtight container in refrigerator up to 1 week.