Nutmeg is the inner nut surrounded by the mace in an outside shell that is grown in a nutmeg tree. It is born like an acorn with the lower layers being mace and yellow and inside lies the nutmeg. It is commonly used in baked goods, on melons and oatmeal porridge. It is used in many different cuisines as a flavoring agent and also sprinkled on rum punches. Dried nutmeg comes in a nut that can be grated on food. It is also available in powder form and is light brown in color.