Sprinkle pork chops with lemon-pepper. Coat grill rack with nonstick cooking spray before starting the grill for indirect medium- hot heat. Grill chops, uncovered, over direct heat area for 2-1/2 minutes on each side.
Place each chop on a double thickness of heavy-duty foil (about 12 in. square). Top with sauerkraut; sprinkle with caraway seeds and nutmeg. Fold foil around pork and seal tightly. Grill, covered, over indirect heat for 15-20 minutes or until a meat thermometer reads 160 degrees F.