In a medium saucepan, combione pudding mix, sugar and water. Cook over medium heat til boiling. Add butter and cranberries, stirring occasionally, until butter melts. Remove from heat and cool to room temperature, stirring occasionally. Stir in egg and vanilla. Combine flour, baking powder, salt and fresh grated nutmeg; add to cranberry mixture; stir to blend. Place in a greased 8X4 inch loaf pan, smoothing the top.
Bake at 350 for 50 minutes or until coffee cake tests done. Cool in pan 15 minutes; remove from pan and cool completely. Lower the oven to only 325 if using a convection oven.
For the topping: Brush top of loaf with melted butter, spiringle with suar and cinnamon.