Preheat your oven to 350°F (175°C). Grease and flour a 9x5-inch loaf pan.
In a medium bowl, whisk together the flour, baking powder, baking soda, salt, and ground nutmeg.
In a separate large bowl, cream together the softened butter and sugar until light and fluffy. Beat in the eggs, one at a time, until well combined. Stir in the yogurt and vanilla extract.
Gradually add the dry ingredients to the wet ingredients, mixing until just combined.
Pour the batter into the prepared loaf pan and smooth the top with a spatula.
Bake in the preheated oven for 50-60 minutes or until a toothpick inserted into the center comes out clean.
Allow the nutmeg bread to cool in the pan for 10 minutes before transferring it to a wire rack to cool completely.