Rinse and thoroughly drain potatoes. In a bowl, combine the potatoes, bacon, onion, eggs, flour, salt, pepper and nutmeg. , In an electric skillet, heat 1/8 in. of oil to 375°. Drop batter by 2 heaping tablespoonfuls into hot oil. Flatten to form patties. Fry until golden brown; turn and cook the other side. Drain on paper towels.