DISSOLVE jelly powder in boiling water. Stir in cold water. Cool to room temperature.
POUR milk into another bowl. Add pudding mix. Beat with wire whisk 30 seconds. Immediately stir into cooled jelly until smooth. Stir in nutmeg. Refrigerate about 1 1/2 hours or until slightly thickened.
STIR in whipped topping with wire whisk until smooth and creamy. Pour into 10 individual dessert dishes or lemons*.
REFRIGERATE 4 hours or until firm. Garnish with additional shipped topping and sprinkle with additional ground nutmeg just before serving.