Preheat oven to 350 degrees F. In a large mixing bowl beat shortening with an electric mixer on medium to high speed for 30 seconds. Add the 2 cups sugar, the 2 tablespoons nutmeg, baking soda, cinnamon, and salt. Beat until combined, scraping sides of bowl occasionally. Beat in eggs and molasses until combined. Beat in as much of the flour as you can with the mixer. Using a wooden spoon, stir in any remaining flour.
In a small bowl stir together the 1/3 cup sugar and the 1 teaspoon nutmeg. Using a 1/4-cup measure or cookie scoop, shape dough into 2-inch balls. Roll balls in sugar mixture to coat. Place balls 2-1/2 inches apart on an ungreased cookie sheet.
Bake about 13 minutes or until tops are cracked and edges are firm (do not overbake). Cool on cookie sheet for 2 minutes. Transfer cookies to a wire rack; cool.