Eggnog, a dairy-based beverage, comprises both milk and egg proteins. We aimed at optimizing the eggnog formulation using Box–Behnken design of response surface methodology. The combined effects of milk (60–75), cream (25–35) and eggnog base (6–8, all three as g 100/ml) were investigated on heat coagulation time, viscosity and thermal gelation temperature. ANOVA indicated that experimental data were well explained by a quadratic model with high check values (R2 > 0.94) and non-significant lack of fit tests. Based on the responses, an optimized formulation of eggnog with 60.0 milk, 25.0 cream and 6.50 eggnog base (as g 100/ml), could be considered best for manufacturing eggnog with desired attributes. This optimized formulation was characterized for physico-chemical, microbial and sensory attributes and the results indicated significantly higher fat and protein content than control formulation, but lesser lactose and total sugar content. Significantly higher viscosity, heat stability and lower thermal gelation temperature were also observed for the optimized formulation. Coliform, yeast and mold, E. coli and Salmonella counts were not detected in any sample but a significantly lower total plate count was observed for the optimized formulation.