Heat oven to 400°. In large mixer bowl, combine all cookie ingredients (except 1/4 cup colored or plain sugar and nutmeg). Beat at low speed, scraping bowl often, until well mixed. Combine the 1/4 cup colored sugar with the nutmeg; set aside. Shape rounded teaspoonfuls of dough into 1-inch balls; roll in sugar mixture. Place 2 inches apart on ungreased cookie sheets. Bake for 8 to 10 minutes, or until edges are lightly browned.