Preheat the oven to 375 degrees. Line baking sheets with parchment paper.
In a medium bowl, whisk together the flour, baking powder and salt.
In the bowl of a stand mixer (or using an electric hand mixer), beat the butter and 1/2 cup of the sugar until creamy, about 1 minute.
Add the cream, eggnog flavoring, cloves, egg yolk and 3/4 teaspoon of the nutmeg and beat until smooth.
Add the flour mixture and mix on low speed until the dough is combined.
Roll the dough into twenty-four 1-inch balls.
In a small bowl, combine the remaining 1/4 cup sugar and 1 teaspoos nutmeg.
Roll the balls in the spiced sugar to coat, and then arrange 2 inches apart on the prepared baking sheets.
Bake in preheated oven for about 14 minutes. Remove the cookies from pans and on to a wire rack. Immediately press a candy hug in the center of each cookie while it is still soft and warm.
Do not move the cookies until the chocolate has completely set and the cookies are cool, at least 1 hour.