PREPARATION:

1. Preheat oven to 400°F. Grease 2 large baking sheets.
2. Heat milk, water, butter, salt, nutmeg and pepper in 3-quart saucepan over medium-high heat until mixture boils. Remove pan from heat; add flour all at once, mixing until smooth. Cook over medium-low heat, stirring constantly, until mixture leaves side of pan clean and forms a ball. Remove pan from heat.
3. Add eggs, 1 at a time, beating until smooth and shiny after each addition. Continue beating until mixture loses its gloss. Stir in 3/4 cup cheese.
4. Drop rounded teaspoonfuls of batter 1 inch apart onto prepared baking sheets. Sprinkle with remaining 1/4 cup cheese.
5. Bake 30 to 35 minutes or until puffs are golden brown. Cool completely on wire racks.
6. Before filling, cut tops off puffs; scoop out and discard moist dough in centers.