Line a 9x13-inch pan with foil.

Combine sugar, milk and butter in a large, heavy saucepan. Heat to boiling, stirring constantly for 4 minutes, or until candy reaches the soft-ball stage (234°F). Remove from heat. Add Vanilla flavored wafers and marshmallow crème; stir until melted. Stir in eggnog flavoring.

Pour into prepared pan and sprinkle top of fudge with ground nutmeg, if desired. Cool at least 4 hours and cut into squares.