Preheat oven to 425°. Lightly butter a 12-cup muffin pan.
Meanwhile, heat oil in a large skillet over medium-high heat. Add pancetta and cook until golden brown, about 6 minutes. Set aside.
Bring a large pot of salted water to a boil. Cook pasta according to package instructions.
In a large bowl, stir together the cream, 1/2 cup cheese, nutmeg and paprika. Season with salt and pepper to taste.
With a slotted spoon, scoop the pasta from the hot water directly into the cream mixture. Stir well to coat. Mix in the pancetta. If cream begins to clump, add a little of the hot pasta cooking water. Let sit for 5 minutes.
Using tongs, transfer a small amount of the pasta mixture and arrange it in a muffin cup, forming a spiral as you place it. Repeat with the remaining pasta, filling all of the cups. Pour any leftover cream into the cups.
Create a small indentation in the center of each cup and sprinkle the remaining cheese amount the nests.
Bake nests until they become golden and bubbly, about 10 minutes. Remove the muffin pan from the oven. Reduce oven temperature to 350°F.
Crack a quail egg into each nest and bake for another minute. Once cooked, remove from heat and allow to cool for 5 minutes. Remove from pan and serve garnished with chopped olives.