1. Mix flour, baking powder and sugar.
2. Mix in the butter and rub it until the flour resembles bread crumbs.
3. Divide the mixture into two.
4. Grease a loose bottomed 7 1/2" round pan.
5. Place half of the flour mixture and press it until firm.
6. In a separate bowl, add milk and baking soda.
7. Add vinegar and nutmeg to milk and whisk.
8. Add this to the flour and mix well. The mixture will be thin.
9. Pour the batter into the pan over the base.
10. Sprinkle chopped walnuts on top.
11. Preheat oven to 175C.
12. Bake the cake until the top is golden brown and a tooth pick inserted comes out clean.
13. If the cake browns fast, place a sheet of foil on top of thepan and bake until done.
14. Remove from oven and allow it to cool.
15. Place the pan on a firm smaller object, loosen the sides of the cake with a knife and gently remove the outer ring.
16. With a help of a long spatula loosen the cake's base and carefully transfer to a serving plate.
17. Slice it up and enjoy.