Preheat the oven to 325ºF.
Prepare a bundt cake pan by coating it with cooking spray and a thin layer of flour. In a large mixing bowl, beat sugar and butter together until fluffy.
Add eggs, one at a time, beating for 30 seconds after adding each one. Add vanilla extract and beat until smooth.
Add half of flour, baking powder, salt, nutmeg, and eggnog to batter.
Beat until smooth. Repeat with the other half of these ingredients.
Pour batter into the prepared bundt pan.
Using a spatula, smooth the top of the batter.
Bake for 1 hour and 40 minutes or until a toothpick comes out clean. Allow cake to cool for 15 minutes before flipping and removing from the cake pan.
Allow cake to cool completely before adding icing.
To prepare icing, whisk powdered sugar and eggnog together in a small mixing bowl until smooth.
Drizzle icing over top of cake and serve