Combine wine, lemon rind, and juice. Stir in 1 cup of the sugar and let stand until sugar dissolves. Combine milk and cream, add wine mixture, and beat with a rotary beater until frothy. Beat egg whites until stiff, add remaining 1/2 cup sugar, a little at a time, beating constantly until whites stand in peaks. Pour wine mixture into punch bowl, top with puffs of egg white, and sprinkle whites with nutmeg.
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