Place the first 5 ingredients on a double thickness of cheesecloth; bring up corners of cloth and tie with string to form a bag. , In a large saucepan, combine the sugar, water, honey, nutmeg and spice bag; bring to a boil. Reduce heat; simmer, uncovered, until syrup reaches desired consistency, 30-45 minutes., Remove from the heat; cool to room temperature. Discard spice bag; transfer syrup to airtight containers. Store in the refrigerator for up to 1 month.