Preheat oven to 350.
In a large bowl, blend onion, garlic and parsley into the ground turkey; set aside.
In a medium bowl, whisk egg until frothy, about 1 minute. Add milk, mustard, salt, pepper and nutmeg and whisk to blend. Add bread crumbs and let stand for 5 minutes.
Add the egg mixture to the meat mixture and blend well, about 1 minute. Spread evenly into a 9x5 loaf pan.
In a small bowl, combine ketchup and water until blended. Spread on top of the meat. Bake until meat is no longer pink, about 90 minuts.
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