In a bowl, combine potatoes, butter, cheese, salt, chives and nutmeg. Mix well. Chill in the refrigerator for at least 30 minutes.
In a shallow bowl, whisk together eggs and milk.
Empty breadcrumbs on a plate.
Heat enough oil for deep frying.
Shape potato mixture into 4 4" logs.
Dip potato oblongs into egg-milk mixture then roll in breadcrumbs. Repeat this step again. Do twice for each kroket. Place in the hot oil and fry until golden brown. Drain on paper towels.
Serve with ketchup, mayonnaise or sweet chile sauce.