Cream margarine, granulated sugar, vanilla essence, cinnamon powder and nutmeg with an electric mixer. Add eggs one at a time, mixing well after each addition.
Combine flour with baking powder; gradually add 2 cups of the flour mixture to the creamed mixture.
To remaining flour mixture, add cherries and 1/2 cup of the chopped peanuts and fold into the batter.
Grease a 10 inch Bundt or Tube pan and sprinkle with remaining 1/2 cup chopped peanuts.
Scrape batter into the prepared pan and bake in a preheated oven at 180°C (350°F) for 1 hour and 15 minutes, or until a toothpick inserted into the center of cake comes out clean.
Cool in pan for about 10 minutes, then turn out onto a wire rack.
Whisk icing sugar and milk in a small bowl until smooth. Spoon icing over cake.
Decorate with peanuts and candied cherries.
Method Note: 1/2 - 1 cup cherries may be used if desired.