1. Stir together flour, baking powder, salt, nutmeg and 1/2 cup sugar. Set aside.
2. In large mixing bowl, combine KELLOGG'S CRACKLIN' OAT BRAN cereal and milk. Let stand 10 minutes or until cereal is softened. Add egg and oil. Beat well. Stir in flour mixture. Set aside 2 tablespoons chopped cherries. Fold remaining cherries and 3/4 cup nuts into batter. Spread in 9 x 5 x 3-inch loaf pan coated with cooking spray.
3. Stir together melted margarine, the remaining 1/4 cup sugar, 1/4 cup nuts and reserved cherries. Sprinkle over batter.
4. Bake at 350°F for 1 hour or until wooden pick inserted in center comes out clean. Cool 10 minutes. Remove from pan.
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