In a large bowl, combine the cake mix, pudding mix, eggs, eggnog, oil, extract and nutmeg. Beat on medium speed for 2 minutes.
Pour into a well-greased 10-in. fluted tube pan. Bake at 350° for 38-41 minutes or until a toothpick inserted near the center comes out clean. Cool on a wire rack for 10 minutes before inverting onto a serving platter.
In a small bowl, combine the confectioners' sugar, extract and enough eggnog to achieve a drizzling consistency. Drizzle over cooled cake.