Melt 8 oz of the chocolate as directed on the package. Beat cream cheese, sugar, nutmeg, and extract in large bowl with electric mixer on medium speed until well blended and smooth. Add melted chocolate and beat until well mixed. Cover.
Refrigerate 4 hours or until firm. Shape into 24 (approx 3/4 inch) balls. Place on waxed paper-lined tray. Refrigerate until ready to dip.
Coat only 12 truffles at a time. Melt 4 oz of the remaining chocolate in a small microwavable bowl on medium 1 1/2 minutes, stirring after one minute. Using a fork, dip 1 truffle at a time into the chocolate. Place on wax paper-lined tray. Sprinkle truffles with nutmeg. Repeat until all truffles are dipped.