Nutmeg and mace have similar taste qualities, nutmeg having a slightly sweeter and mace a more delicate flavor. Mace is often preferred in light-coloured dishes for the bright orange, saffron-like colour it imparts. It is nice in cheese sauces and is best grated fresh (see nutmeg grater). In Indian cuisine, nutmeg is used almost exclusively in sweets. It is known as jaiphal in most parts of India. It is also used in small quantities in garam masala. In other European cuisine, nutmeg and mace are used especially in potato dishes and in processed meat products; they are also used in soups, sauces and baked goods. Japanese varieties of curry powder include nutmeg as an ingredient. Nutmeg is a traditional ingredient in mulled cider, mulled wine, and eggnog.

Nutmeg is usually associated with sweet, spicy dishes — pies, puddings, custards, cookies and spice cakes. It combines well with many cheeses, and is included in soufflés and cheese sauces. In soups it works with tomatoes, slit pea, chicken or black beans. It complements egg dishes and vegetables like cabbage, spinach, broccoli, beans onions and eggplant. It flavours Italian mortadella sausages, Scottish haggis and Middle Eastern lamb dishes. It is often included as part of the Moroccan spice blend ras el hanout. It is indispensable to eggnog and numerous mulled wines and punches.
One whole nutmeg grated equals 2 to 3 teaspoons of ground nutmeg.