Preheat oven to 350 and grease a loaf pan with nonstick cooking spray. Set aside.
Combine flour, baking powder, salt and nutmeg in a small bowl and mix well. Set aside.
Add butter and sugar and beat well in a mixing bowl. Add vanilla, eggs and eggnog and mix well. Beat in flour just until combined. Pour batter into prepared pan.
Bake for 45-50 minutes or until a toothpick inserted in the center comes out clean. Let cool completely before icing.
Add powdered sugar, nutmeg and eggnog to a small bowl and whisk until smooth. Drizzle over bread and top with sprinkles. Let set for icing to harden a bit. Slice and serve.