1. In a Dutch oven, cook bacon, onions, celery, carrot, and garlic over medium heat, stirring occassionally, until softened, about 8 minutes.
2. Add beef; season with salt and pepper. Cook, stirring and breaking up meat with a spoon, until browned, 8-10 minutes.
3. Raise heat to high. Add milk and nutmeg; cook, stirring frequently, until milk has evaporated, 6-8 minutes. Add wine; cook, stirring frequently, until wine has evaporated, 6-8 minutes.
4. Stir tomatoes into beef mixture; simmer gently over medium-low heat, stirring occassionally and adding water as needed to prevent sauce from becoming too dry (1 1/2 - 2 cups total), until sauce is thick and beef is very tender, about 2 hours. Season with salt and pepper.