Preheat oven to 350ºF. Grease an 8 1/2 x 4 1/2 x 2 1/2-inch loaf pan.
Combine flour, baking powder, cinnamon and nutmeg in a small mixing bowl; set aside.
Using an electric mixer, beat butter or margarine with sugar in a medium mixing bowl until light and fluffy. Add egg; mix well. Break up cranberry sauce with a fork and add to the butter mixture. Add nuts. Add dry ingredients to the cranberry mixture, mixing just until the dry ingredients are moist.
Spread batter evenly into prepared loaf pan. Bake until golden brown and a toothpick inserted into the center comes out clean, about 1 hour and 15 minutes. If bread begins to brown too quickly, loosely cover with foil and continue to bake until bread tests done.