Steps:
- Place cinnamon and nutmeg in resealable plastic bag; crack into pieces using mallet or rolling pin. Transfer to spice grinder. Add allspice; blend to coarse powder. Transfer 1 tablespoon to shallow dish; mix in 1/3 cup sugar. Set spiced sugar aside.
- Stir remaining spice powder in medium saucepan over medium-high heat until just beginning to smoke, about 2 minutes. Remove from heat. Cool 5 minutes. Repeat heating and cooling process 3 more times until spices are very fragrant but not burned. Add syrup; bring to boil. Reduce heat; simmer 5 minutes. Strain through sieve into bowl. Cool.
- Mix 3/4 cup spice syrup, rum, lemon juice, orange juice, and bitters in punch bowl. Add ice and citrus slices. Rub 1 orange slice around rim of 8 glasses to moisten; dip glasses into spiced sugar. Place glasses around punch bowl.
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