Heat your oven to 325°F and grease a loaf pan (approximately 9x5 inches) or two smaller loaf pans. While the oven preheats, prepare your dry ingredients by whisking together the flour, baking powder, cinnamon, nutmeg, and salt in a medium bowl. Set aside. Squeeze your shredded squash firmly in a clean kitchen towel or cheesecloth to remove as much moisture as possible—this is crucial to prevent a soggy loaf. I always squeeze it a bit longer than seems necessary because excess moisture can really affect the final texture.
In a large bowl, beat the room-temperature eggs until they're bubbly and slightly lightened in color, about 1-2 minutes. This aerates the eggs and helps create a lighter crumb structure. Add the sugar, oil, and vanilla essence to the beaten eggs, then mix the baking powder, cinnamon, and nutmeg directly into this wet mixture. Stir vigorously for about 1 minute until everything is well combined and the spices are evenly distributed throughout the batter.
Add the dry ingredient mixture from Step 1 to the wet ingredient base from Step 2, stirring until just combined and smooth. Don't overmix—a few lumps are fine and will actually result in a more tender crumb. Gently fold in the squeezed-dry squash until it's evenly distributed throughout the batter.
Pour the batter into your prepared loaf pan(s), smoothing the top gently with a spatula. Bake at 325°F for 45 minutes, or until a toothpick inserted in the center comes out clean or with just a few moist crumbs. The bread should be golden brown and a skewer should meet light resistance when inserted. Remove from the oven and let the bread cool in the pan for about 10 minutes, then turn it out onto a wire rack to cool completely before icing.
While the bread cools, whisk together the icing sugar and freshly squeezed lemon juice in a small bowl to create a smooth, drizzle-able glaze. I always use freshly squeezed lemon juice rather than bottled because it has much brighter acidity and flavor. Once the bread is completely cooled, drizzle the lemon glaze over the top in a decorative pattern and sprinkle with fresh lemon zest for a beautiful finish and an extra pop of citrus flavor.