Whisk together flour, baking soda, salt, and nutmeg. Set aside.
Place macadamia nuts in a food processor. Process until smooth, about 2 minutes.
In a large bowl, combine processed macadamia nuts, 1/2 cup granulated sugar, and brown sugar using an electric mixer at medium speed. Add vanilla extract and egg. Beat well. Gradually add flour mixture to sugar mixture, beating at low speed just until combined. Dough will be thick. Stir in cranberries. Chill dough 10 minutes.
Preheat oven to 375°. Line 2 baking sheets with parchment paper or silicone mats.
Place 1 tablespoon granulated sugar in a small bowl. Roll dough into balls about 1-inch in diameter. Lightly press each ball into sugar. Place cookie balls, sugar side up, on prepared baking sheets. Gently press the top of each cookie with a fork twice to form a crisscross pattern. Dip fork in water as needed to keep it from sticking to cookies.
Bake cookies (1 baking sheet at a time) for 9-11 minutes, or until golden. Remove from pans to wire racks to cool.
Makes about 30 cookies.