In a saucepan heat the coconut milk with the vanilla and sugar, stirring well until sugar is dissolved and the mixture is hot and simmering, about 5 minutes. Taste and add more sugar if a sweeter drink is desired.

Remove from heat. Divide the coconut rum amongst 8 glasses, 1.5 ounces of rum per glass, top with the hot coconut milk. Top with sweetened whipped cream and garnish with ¼ teaspoon of freshly grated nutmeg and a tablespoon or so of shredded coconut. Serve immediately

You can also serve this cold or over ice. Heat the coconut milk as stated above then let chill completely. Add the rum and pour into glasses with ice or without ice. Garnish the same way as above.