In large mixer bowl, combine 1 cup flour, yeast, sugar, nutmeg and salt; mix well. In saucepan, heat milk, water and shortening until warm (120°-130°F; shortening does not need to melt). Add to flour mixture. Add egg. Blend at low speed until moistened; beat 3 minutes at medium speed. By hand, gradually stir in remaining flour to make a stiff batter. Spread in greased 9-inch square cake pan.