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Preheat oven to 350 degrees F. Butter and flour a 9-inch round cake pan, then line with parchment paper and butter and flour the paper.
Sift flour, baking powder, nutmeg and salt in a large bowl.
Using an electric mixer, cream the butter until it is pale yellow. Add vanilla and sugar; mix until fluffy. Beat in eggs, one at a time. Gradually add the flour, being careful not to over-mix the batter.
Transfer batter to prepared pan. Tap it on the counter once or twice to shake out any air bubbles.
Bake until golden and a toothpick inserted in the center comes out clean, about 25-30 minutes.
Allow the cake to cool in the pan on a wire rack for about 10 minutes, then remove from the pan to continue cooling.
Once the cake is completely cool, dust with powdered sugar, slice and serve.