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1
Preheat oven to 350*. Grease and flour well a 10-inch kuchen, bundt or tube pan. in large bowl, combine walnuts, cherries and raisins with 1/2 C bourbon; mix well. Let stand at room temperature several hours or overnight- liquid will be absorbed.
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2
On sheet of waxed paper, sift flour with baking powder, salt and nutmeg; set aside. In large bowl of electric mixer, at medium speed, beat butter, sugar and vanilla until smooth and light and fluffy. Add eggs, one at a time, beating well after each addition.
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3
Beat at medium speed 4 minutes, occaisonally scraping side of bowl. Batter will become thick and lighter in color. At low speed, gradually beat in flour mixture until smooth.
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4
Add to fruit; mix with wooden spoon to combine well. Turn into prepared pan; smooth top with spatula. Bake in center of oven 1 hour and 20 minutes in kuchen pan; 1 hour 15 minutes in bundt pan; 1 hour and 10 minutes in tube pan.
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5
Cake tester inserted in center should come out clean. Cool in pan on wire rack 20 minutes. Use small spatula to loosen cake around inside; invert on wire rack; cool completely. In small bowl, soak a large piece of cheesecloth in 1/2 C bourbon.
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6
Stretch cheesecloth on large piece of foil. Place cake in center. Wrap cake in cheesecloth; then wrap in foil. Refrigerate several days to mellow. (Will keep several weeks in refrigerator). To serve, slice thinly; let warm to room temperature.