Preheat your oven to 350°F and position a rack in the center. While the oven heats, drain the maraschino cherries thoroughly and pat them dry with paper towels—this prevents excess moisture from making the bread soggy. Once dry, chop them into bite-sized pieces and set aside. Ensure your eggs and butter are at room temperature, as this helps create a smoother batter with better emulsification and a more tender crumb.

In a medium bowl, whisk together the softened butter, eggs, vanilla extract, and freshly ground nutmeg until well combined and slightly fluffy, about 1-2 minutes. Pour in the chilled eggnog and whisk until the mixture is smooth and uniform. The cold eggnog against the room-temperature butter will create a homogeneous base—this is important for even crumb structure. I find that whisking rather than just stirring creates a slightly lighter texture in the final bread.

Sift the flour, sugar, and baking powder together into a large bowl. Sifting aerates the flour and distributes the baking powder evenly throughout, which helps the bread rise uniformly and prevents dense pockets. If you don't have a sifter, whisk these ingredients together vigorously for about 30 seconds.

Pour the wet ingredient mixture from Step 2 into the dry ingredient mixture from Step 3. Stir gently with a spatula or wooden spoon until just combined—do not overmix, as this develops gluten and creates a tough, dense bread. The batter should look slightly lumpy and rough. Fold in the chopped cherries from Step 1 with a final few gentle strokes, distributing them evenly throughout. I always fold the cherries in last because it's easier to do without overworking the batter.

Lightly grease a standard loaf pan (9x5 inches) and pour the batter into it, smoothing the top gently with a spatula. Place in the preheated 350°F oven and bake for 45-50 minutes, until a toothpick inserted into the center comes out clean or with just a few moist crumbs. The bread is done when the top is golden brown and springs back lightly when touched.

Remove the bread from the oven and let it cool in the pan for 10 minutes before turning it out onto a wire rack to cool completely. This resting period allows the crumb structure to set properly so the bread doesn't fall apart when you remove it. Once completely cooled, slice and serve. Store leftovers wrapped in plastic wrap at room temperature for up to 3 days, or freeze for longer storage.