Beat 1/3 cup sugar into the egg yolks. Add salt. Slowly stir in the milk. Cook in double boiler over hot, not boiling water. STir constantly till mixture coats spoon. Cool Add vanilla. Beat whites till foamy. Gradually add 3 T sugar, beat till soft peaks form. Chill 3-4 hours. Pour into punch bowl. Fold 1 1/2 tsp sugar into whipped cream. Dot eggnog with "islands" of it. Sprinkle with nutmeg.
Those are the directions from Fran. Not sure but I think I left out the whites and just folded in the whipped cream.