Preheat oven to 400 degrees. Add water, milk, and butter to a saucepan on medium heat. Stir until butter melts, it comes to a boil, and then reduce heat to low.Stir in flour, bit-by-bit, until combined, take off heat, and let cool for about 2 minutes.
Slowly stir eggs into dough until combined. Finally stir in cheese, salt, pepper, and nutmeg. By now it should resemble a sticky paste that pulls away from the sides of the pan.
Pour this mixture into a ziplock bag and cut the corner. On an oiled wax-paper-lined baking sheet, squeeze out dollops of the dough, tapping the peaks down with your finger. Sprinkle some more cheese over each one.
Bake in oven for 20-25 minutes or until crispy on top, making sure not to prematurely open oven, for fear of deflation.