Combine gelatin and 4 1/2 tablespoons water. Heat, but do not boil, evaporated milk, 1/2 cup water and nutmeg. Add to 3 or 4 beaten egg yolks and sugar. Return to fire and cook until the consistency of thick cream. Do not over cook or it will curd.
Add to gelatin mixture. Cool and add vanilla. When it begins to thicken, fold in 3 or 4 stiffly beaten egg whites. Pour into two baked pie shells and chill. Before serving, cover with whipped cream and sprinkle with grated bitter chocolate.