Preheat your oven to 350°F (175°C). Grease the 9x13 inch baking pan with butter or non-stick spray.

In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.

Add the eggs one at a time, beating well after each addition. Mix in the vanilla extract and eggnog until well combined.

In another bowl, whisk together the flour, ground nutmeg, baking powder, baking soda, and salt.

Gradually add the dry ingredients to the wet ingredients, mixing until just combined. Avoid over-mixing.

Pour the batter into the prepared baking pan and spread it evenly.

Bake in the preheated oven for about 30 minutes, or until a toothpick inserted in the center comes out clean.

Once baked, remove the cake from the oven and let it cool in the pan for about 10 minutes, then transfer it to a wire rack to cool completely.

For the frosting, beat the softened butter in a mixing bowl until smooth. Gradually add in the powdered sugar and pour in the eggnog until the desired consistency is reached.

Once the cake has cooled completely, spread the eggnog frosting evenly over the top. Sprinkle ground nutmeg on top for garnish.

For extra flavor, consider adding a splash of rum to the batter or frosting.

This cake can be made a day ahead and stored in the refrigerator; just frost it before serving.

Serve with a sprinkle of extra nutmeg or cinnamon for added festive flair.