Preheat oven to 350° F. Grease an 8 ½ x 4 ½-inch loaf pan and set aside.
In a large bowl, use an electric mixer to cream together the butter and sugar. Add the egg and mix until incorporated. Slowly add the milk, almond extract and vanilla extract; mix to combine.
In a separate bowl, sift together the flour, baking powder, cinnamon, salt and nutmeg. Gradually add the dry ingredients to the wet ingredients, mixing just until combined. Be careful not to over-mix the batter.
Gently fold in the cherries.
Transfer batter to prepared loaf pan.
Bake for 55-60 minutes, or until a toothpick inserted in the center comes out clean.
Cool in the pan for about 10 minutes, then turn onto a wire rack to cool completely.
Once the bread is cool, combine the confectioners sugar, milk and almond extract in a bowl. Whisk until smooth. If the glaze seems too thin, add more confectioners sugar. If it’s too thick, add a small amount of milk.
Drizzle the glaze over the cool bread. Sprinkle with sliced almonds, if desired. Slice and serve!