Combine the sugar, butter, eggnog and 1 tsp nutmeg in a heavy saucepan.
Bring to a boil, stirring frequently. When it comes to a rollilng boil, add a candy thermometer to the side of the pan.
Heat mixture to 235 degrees F. This will take about 10 minutes. If you don't have a candy thermometer you can test it by dropping a small amount of syrup into cold water. It should form a soft ball that flattens when removed from the water and placed on a hard surface.
Remove pan from the heat, add white chocolate, marshmallow cream and vanilla.