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Not actually a true "nut," nutmeg powder is the dried and ground form of the kernel of the fruit from the Myristica fragrans evergreen tree . Nutmeg and mace have similar sensory qualities, with nutmeg having a slightly sweeter and mace a more delicate flavor.
Nutmeg is used for flavoring many dishes, usually in ground or grated form for use in baking and sprinkling over drinks -- think eggnog and hot chocolate. Nutmeg is a staple in Indian, Middle Eastern & European cuisine as well.