Slice the bread into 1 inch slices and dip in the mixture until the bread is saturated, approximately 1 minute. Arrange on a baking sheet and set aside for 1 hour. If time permits, prepare the night before and refrigerate overnight.
In a large, lightly oiled skillet or griddle, slowly brown both sides of the bread for 2-3 minutes on each side. Remove to a clean cookie sheet and sprinkle lightly with nutmeg.