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 9x5-in. loaf pan. Bake at 350° for 45-50 minutes or until a toothpick inserted in the center comes out clean. Cool for 10 minutes before removing from pan to a wire rack.