Sift flour, measure and sift again with the baking powder, salt and nutmeg.
Cream margarine and sugar well. Add 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 addition.
Fold in the egg whites which have been beaten until stiff. Sprinkle half the flour that was saved out over the batter, then sprinkle halved cherries over, and then remaining flour.
Fold gently until all is well blended. Bake in a well greased 5 x 9 loaf pan for about 1 - 11/2 hours at 350 degrees or until done.
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