In a large bowl, combine the flour, sugar, baking powder and nutmeg.
In a small bowl, beat the eggs, eggnog, butter and vanilla.
Stir into dry ingredients just until moistened.
Fold in pecans and cherries.
Transfer to a greased 9-in.x 5-in.x 3-in. loaf pan.
Bake at 350° for 45-50 minutes or until a toothpick inserted near the center comes out clean.
Cool 10 minutes; remove from pan to a wire rack.