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In medium saucepan, melt butter; blend in the 1/3 cup flour.
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Add the 1 1/2 cups milk all at once; cook and stir until thickened.
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Add pepper and nutmeg.
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Stir about 1/2 cup hot mixture into egg yolks; return to hot mixture.
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Cook and stir 10 minutes.
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Add cheese; stir until smooth.
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Spread cheese mixture in lightly greased 11x7x1 1/2 inch baking pan.
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Chill until firm.
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Cut chilled mixture into 12 portions.
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In small bowl, beat together the 2 eggs and the 1/2 cup milk.
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Roll cheese croquettes carefully in the 1/2 cup flour; dip in egg mixture, then roll in crumbs to coat.
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Deep fry in oil heated to 375° until golden, 2 to 3 minutes.
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Drain.