Step 1: Cut butter into 8 slices and chill in fridge. Preheat oven to 350 degrees. Grease, flour and line a 9 x 9 pyrex baking dish or shiny cake pan.
Step 2: Whisk together flour, baking powder and salt. Chen cut in butter with a pastry cutter, then sugar. Press half into bottom of cake pan.
Step 3: Dissolve baking soda in milk, add beaten egg and nutmeg, then add to remaining mixture, combining well.
Step 4: Pour into pan, sprinkle with nuts and cinnamon, if desired. Bake 45 minutes, or until done, being careful not to over bake. I don't recommend using a dark pan, but if you do, start testing 10 minutes earlier.
Step 5: Cool for 10 minutes, then remove to a cooling rack and dust with powdered sugar.
Step 6: Cool completely, then place in airtight container or wrap well.
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