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1
Preheat oven to 350F.
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2
Pulse cranberries with 1/2 cup granulated sugar in a food processor until finely chopped (do not puree).
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3
Transfer to a sieve and let drain while making batter.
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4
Sift together flour, baking powder, and salt.
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5
Beat together butter and remaining 1 1/4 cups granulated sugar in a large bowl with an electric mixer at medium-high speed until light and fluffy, about 5 minutes with a standing mixer or about 8 minutes with a handheld.
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6
Add eggs 1 at a time, beating well after each addition, then beat in vanilla.
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7
Reduce speed to low and add flour mixture and milk alternately in batches, beginning and ending with flour and mixing until just incorporated.
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8
Spread one third of batter evenly in well-buttered loaf pan, then spoon half of drained cranberries evenly over batter, leaving a 1/2-inch border along sides.
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9
Top with another third of batter and remaining cranberries, leaving a 1/2-inch border along sides, then cover with remaining batter.
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10
Bake in middle of oven until golden brown and a tester inserted in center comes out without crumbs, 1 to 1 1/4 hours.
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11
Cool cake in pan on a rack 30 minutes.
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12
Invert cake onto rack.
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13
Serve warm or at room temperature.