The Wolverines (4-6) scored 100 points for the first time since Feb. 22, 1998, when they beat Indiana 112-64.
Nelson's driving layup closed Michigan's lead to 57-49 with 17:24 left. But the Wolverines outscored the Golden Grizzlies 8-2 during the next 2:48 to take a 65-51 advantage.
K'Len Morris' three-pointer with 11:04 left made the score 79-58 and gave the Wolverines the first of several 20-point leads.
Michigan led 55-42 at halftime.
It was still a three-point game midway through the first half, but Michigan scored the next 10 points for a 38-25 lead.
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Mike Brey is looking at former Notre Dame players to fill two assistant jobs that have opened up with the departures of Martin Ingelsby and Anthony Solomon.
Purdue's 2016-17 prospects got a jolt Wednesday when forward Caleb Swanigan announced he will return for his sophomore season.
Clemson's Jaron Blossomgame says he is withdrawing from the NBA draft and returning to school for a final season.