Sift flour, measure and sift again with the baking powder, salt and nutmeg. Cream butter and sugar well. Add the egg yolks and vanilla. Beat well again. Add 1-1/4 cups of the flour alternately with the milk, beginning and ending with flour and beating smooth after each additions. Fold in the egg whites which have been beaten until stiff. Sprinkle half of the flour that was saved out over the batter, then sprinkle cherries over, and then remaining flour, fold gently until all is well blended. Bake in a well greased 5x9 loaf pan for about 1 to 1-1/2 hours at 350 F or until done.
