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Combine sugar and flour in a heavy medium saucepan. Combine eggs and milk in a bowl; beat until blended using a wire whisk. Gradually stir into saucepan, stirring until smooth. Cook over medium heat, stirring constantly, until thickened enough coat a metal spoon. Do not boil. Remove from heat, and stir in vanilla. Place a piece of heavy-duty plastic wrap directly on surface of custard to keep it from forming a skin; cool to room temperature. Pour into individual serving dishes or one large one; sprinkle with nutmeg. Cover and refrigerate until set.
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