Combine caramel & milk in a saucepan over low heat, whisking constantly until just mixed, 1-2 minutes. Mixture should be just lightly warmed but if it’s hot allow to cool to room temperature before next step.
Beat yolks in a large mixing bowl. Gradually add milk & caramel mixture and beat until it starts to thicken. Whisk in rum and vanilla extract. Pour into a large punch bowl and chill for 1-2 hours.
Fold in whip cream before serving. Garnish with freshly ground nutmeg. Serve and enjoy!
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