Preheat oven to 350°F.
Generously butter a 12-cup Bundt pan and sprinkle chopped nuts evenly in the bottom of the pan.
Cream together butter, sugar and nutmeg until light and fluffy. Add eggs, beating after each addition. Combine flour and baking powder; add gradually to the butter mixture alternating with the sherry. Mix until blended.
Pour batter into prepared pan.
Bake 50 to 60 minutes or until cake tester comes out clean.
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