Muddle lemon peel and sugar hard to make an Oleo-Saccharum. Let rest some place warm for one hour. Add lemon juice and hot water. Stir to dissolve sugar. Strain this into a bottle and add Smith & Cross. This is punch base, and will probably age for a week in the refrigerator. To assemble punch, add punch base and white rhum in a large punch bowl. Float coconut water ice, and add bitters, stirring them in gently. Taste, and add water for dilution, remembering that this is a punch, not a cocktail - it should be about the strength of vermouth. Garnish with grated nutmeg.
If all the punch is to be ladled out at once, change block of ice to ice cubes for quicker dilution.
Based on the "Punch for a 750 ml bottle of alcohol" punch , "Punch", by Dave Wondrich