Combine sugar and cinnamon in a small bowl and sprinkle evenly to coat bundt pan. Shake off excess and save it for later. Set pan aside.
In a large mixing bowl combine cake mix, pudding, nutmeg; stir to combine, then add egg nog, sour cream, eggs, oil, water and blend until well combined.
Pour batter into prepared pan.
Sprinkle leftover cinnamon/sugar mixture over the batter.
Bake 35-40 minutes, until toothpick inserted in center comes out clean.
Remove from oven and let cake rest on cake rack in the pan for 10 minutes.
Meanwhile in small bowl whisk together powdered sugar and some egg nog to make a glaze.
Turn out cake onto cooling rack, drizzle glaze over top and grate some fresh nutmeg on top, if desired.