Heat the milk and cream in a heavy bottomed large pot over medium-low heat until small bubbles start to form around sides of pan. Remove from the heat and slowly whisk in the butterscotch chips until all the chips are fully melted.
In a large bowl, whisk together the eggs, egg yolks, and sugar until well blended. Add a small amount of the hot milk/cream to the egg/sugar mixture while continuously whisking. Continue to slowly add the remainder of the hot milk/cream to the egg/sugar mixture while whisking and until fully incorporated. Strain mixture through a sieve and pour into 4 ounce ramekins or baking dishes.
Place ramekins in a large baking dish and put on the oven rack with the door still open. Carefully pour hot water into the bottom of the pan until it comes halfway up the sides of the ramekins. Be VERY CAREFUL not to get any water into the ramekins and custard.
Bake for 45-60 minutes. Keep checking the pudding after 45 minutes to see if the custard has set , but be sure to not overcook it. Custard is fully cooked when it has a slight jiggle to it and no visible liquid. Remove the ramekins from the water bath and place on wire racks to cool.
Once pudding has completely cooled, cover with plastic wrap and store in refrigerator until chilled. When ready to serve, top with homemade whipped cream and nutmeg cashews.
FOR THE NUTMEG CASHEWS:
Mix together the ½ egg white, sugar, and spices in a medium bowl. Add the cashews (or walnuts) and stir well, completely coating the nuts. They should be slightly wet but not soaking in the egg mixture or they will not cook properly.
Place on parchment lined baking sheet and bake at 300F/148C for 10-15 minutes, stirring after every 5 minutes, being careful to not burn the nuts.
Serve at room temperature or chill in the refrigerator for at least 2 hours
Store leftovers, covered, in the refrigerator for up to 5 days.
Store leftover whipped cream in a separate container in the refrigerator and store leftover nutmeg cashews in separate container at room temperature.