Trim all visible fat from veal short ribs. Remove middle bone and one side bone from each veal rib section; reserve bones. Sprinkle 'inside' of veal with 1 tsp salt, nutmeg and pepper. Roll veal flap around remaining bone; tie with kitchen string. Place veal and reserved bones in deep pan just large enough to hold veal and bones in single layer.
Add stock and 1 tsp salt; bring to a boil. Reduce heat to simmering; skim surface thoroughly. Add onions, mushrooms, celery, morels, garlic, thyme, cloves and bay leaves. Cover and simmer 3 hours or until veal is fork-tender.
Remove veal. Strain braising liquid; discard solids. Pour braising liquid over veal. Cover and refrigerate until cool, preferably overnight.
Before serving, slowly reheat veal in braising liquid. Drain veal; reserve liquid. Keep warm.
Remove string from one veal rib section; place in center of plate. Spoon 3/4 cup sauce over veal. Spoon 3/4 cup ragout around veal. Sprinkle with nutmeg.