Step 1: Preheat oven to 350 degrees.
Step 2: Whisk together flour, sugar and baking powder in a large mixing bowl.
Step 3: Add butter, egg whites, vanilla, nutmeg, eggnog and milk and mix on medium speed just until smooth. Do not over mix (you may notice little bits of butter in the batter, but that's ok. They will melt into the cupcake as they bake).
Step 4: Fill cupcake liners a little more than half way. Bake 18-20 minutes.
Step 5: Allow to cool for 2-3 minutes, then remove to cooling rack to finish cooling completely.
Step 6: Combine butter and shortening and mix until smooth.
Step 7: Add 2 cups of powdered sugar and mix until smooth. Add eggnog, rum extract and nutmeg and mix until smooth. Add remaining powdered sugar and mix until smooth. Add a little more eggnog, in necessary, until desired consistency is reached.
Step 8: Pipe or spread on top of cooled cupcakes.
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