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Line a 13x9 pan with foil, then grease the foil.
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In a medium saucepan, over medium heat, cook sugar and butter, stirring, until butter is melted. Remove from heat and cool slightly.
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Stir eggs and vanilla into sugar mixture.
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Add flour, baking powder, and nutmeg; stir to combine. Stir in nuts.
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Spread the dough in the prepared pan. Bake at 350°F for 25-30 minutes or until edges begin to pull away from the pan.
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Cool in the pan on a wire rack. Cut into bars or diamond shapes when cool.
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In a small bowl combine powdered sugar, vanilla and 1 tablespoon of eggnog. Add additional eggnog, 1 teaspoon at a time, if necessary to make the glaze a piping consistency. Pipe icing over bars.