Prepare a cupcake pan with liners and non-stick spray, and set aside. Preheat oven to 350°F.
In a medium-sized bowl, combine the flour, baking powder, salt, and nutmeg. Set aside.
In a large bowl, beat butter, sugar, and oil until light in color and fluffy. This should take about 3 minutes.
Add in the eggs, one at a time, until fully combined. Add in the vanilla extract.
Add in half of the dry ingredients and mix until mostly combined. Add in the eggnog and combine. Now add in the rest of your dry ingredients and mix until fully combined. Be careful not to over-mix the batter.
Fill the cupcake liners just over half-way full. Place in the oven at 350°F for 18-20 minutes or until a toothpick comes out clean.
Remove the cupcakes and place them on a cooling rack until cool to the touch.