Beat the butter and sugar together until fluffy; I suggest using an electric mixer. Beat in the yolks. Add the eggnog--use store-bought or homemade! Whisk together the flour, powder, and nutmeg, then dump that into the batter and stir it in well. Wrap the dough in plastic--it will be very sticky--and put it in the refrigerator for at least two hours. Preheat the oven to 400º F and butter two cookie sheets. Mix together the red sugar and the cinnamon to make the topping. Take 1-inch balls of dough and roll them in the topping, then place them on the sheets 2 inches apart. Bake for 8-10 minutes. Cool them for 1 minute on their hot sheets and then remove them to a wire rack until cool.
NOTE: Making your own eggnog is not difficult, so it is suggested you give it a shot! Also, if you can't find red sugar available to buy, stirring food coloring into sugar makes a reddish sugar, though it usually ends up more pink than anything.