Cut the bread into small cubes.
Mix the flour with salt, sugar and nutmeg in a bowl. Crumble the yeast into it. While stirring, add the milk, egg and egg yolks. Stir into a smooth dough. Mix in the bread and let it rest covered for about 30 minutes in a warm place.
In an elongated, shallow pot, bring salted water to a boil.
Moisten 3 cloth napkins or towels and brush with the melted butter.
Separate the dough into 3 rolls of about 15-30 cm (approximately 6-12 inches) in length with a diameter of 4-5 cm (approximately 1.5-2 inches). Wrap in the buttered napkins, but not too tightly. Tie together with kitchen twine. Cook in the boiling water about 30 minutes, turning occasionally.
Lift the dumpling rolls out of the water and drain well. Take off the napkins and cut into slices before serving.