Heat oven to 350°. In a medium-size bowl, pour scalded milk over Grape-Nuts and let sit 5 minutes. In a second medium-size bowl, beat eggs, sugar, vanilla, and salt. Add egg mixture to milk and Grape-Nuts and stir well. Pour into a buttered 2-quart casserole dish. Generously grate nutmeg over the top. Place the casserole into a deep roasting pan. Place in the oven and pour water into the roasting pan, enough to reach halfway up the side of the casserole. Bake 45 to 60 minutes, until almost set in the center (very slight jiggle).
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