1. Heat milk over medium-high heat in a heavy saucepan to 180° or until tiny bubbles form around edge. (Do not boil). Remove from heat; set aside. 2. Combine eggs and egg whites in a large bowl; beat well with a wire whisk. Add sugars; beat well with a wire whisk. Gradually add milk to egg mixture beating constantly. Stir in extracts. 3. Spoon 1/2 cup egg mixture into each of 8 (6-ounce) custard cups; sprinkle with nutmeg. Place 4 custard cups in each of 2 (9-inch) round cakepans; add hot water to each pan to a depth of 1 inch. Bake at 325° for 45 minutes or until set. Remove custard cups from pans; cool to room temperature. Cover with plastic wrap; chill.
