I know this is a matter of style, hence the subjective tag. I have a small piece of code, with two nested conditions. I could code it in two ways, and I'd like to see how more experienced developers think it should look like.

Style 1:

while (!String.IsNullOrEmpty(msg = reader.readMsg()))
{
    RaiseMessageReceived();
    if (parseMsg)
    {
        ParsedMsg parsedMsg = parser.parseMsg(msg);
        RaiseMessageParsed();
        if (processMsg)
        {
            process(parsedMsg);
            RaiseMessageProcessed();
        }
    }
}

Style 2:

while (!String.IsNullOrEmpty(msg = reader.readMsg()))
{
    RaiseMessageReceived();
    if (!parseMsg) continue;

    ParsedMsg parsedMsg = parser.parseMsg(msg);
    RaiseMessageParsed();
    if (!processMsg) continue;

    process(parsedMsg);
    RaiseMessageProcessed();
}

(Side question: how do I put empty lines in the source code sample?)