Combine scalded milk, 1/4 cup sugar, salt and butter. Cool to lukewarm. Combine warm water in large mixing bowl stirring in yeast until dissolved. Blend with mixture and eggs gradually. Beat in flour until smooth. Cover and rise in warm place until double in bulk. Stir down. Turn into greased and sugared 10 inch tube pan. Cover and let rise again double in bulk about 30 minutes. Mix remaining sugar and nutmeg and sprinkle on top. Bake at 400 degree oven for 40 minutes. Remove and cool 5 minutes (turn out).