Ready.
Set.
Make.

In a saucepan, combine evaporated milk, water, butter, salt and pepper. Bring to a boil. Remove from heat and stir in flour all at once, stirring until dough forms a ball. Return to medium heat, and cook, stirring for 2 to 3 minutes.

Remove from heat and transfer dough to a bowl. Cool mixture 5 minutes. Add 3 eggs, one at a time, beating each one in completely. Beat the fourth egg separately and add approximately half of egg (use remaining beaten egg to lightly brush puffs). Stir in both cheeses and nutmeg.

Drop dough (about 4 across and 6 down) in 1 ½ tbsp (22 mL) mounds onto a parchment-lined baking sheet. Brush lightly with remaining beaten egg. Bake in a preheated 400ºF (200ºC) oven for 28 to 30 minutes, until puffed and golden brown. Remove to a wire rack. Serve warm or at room temperature.