In a large dutch oven, heat oil on medium-high heat. Add vegetables and cook until onion is transparent and carrots have softened.
Add in ground beef and pancetta. Cook until browned and fat is rendered out. While cooking, break beef apart with a wooden spoon until it is in small clumps. Remove excess fat.
Add wine and cook uncovered until liquid has reduced and pot is almost dry.
Add tomato paste and mix to fully incorporate. Season with nutmeg, oregano and add the bay leaf. Stir in chicken stock and milk. Let simmer uncovered for 2 hours stirring occasionally. Meat should be tender and if the liquid evaporates too quickly, add additional chicken stock to the sauce.
Season sauce to taste with salt and pepper. Cook pappardelle to al dente. Serve sauce hot over pasta. Top with grated parmesan cheese and enjoy!