PLACE water and oats in blender container; cover. Blend for 30 seconds. Strain mixture through fine mesh strainer into medium saucepan. Discard solids.
ADD evaporated milk, sugar, cinnamon sticks and nutmeg to saucepan. Cook on medium-low heat, stirring constantly, until mixture lightly coats the back of a spoon (about 25 to 30 minutes). Remove from heat and remove cinnamon sticks.
STIR in Nesquik with wire whisk until well blended. If necessary, additional warmed evaporated milk or water can be added for a thinner consistency. Serve hot with grilled ham and cheese sandwiches or arepas.