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Preheat oven to 350°F. Grease the bottom and 1/2 inch up sides of an 8-by-4-inch loaf pan; set aside. In a medium bowl, combine flour, cinnamon, baking soda, salt, baking powder and nutmeg. Make a well in the center of the flour mixture; set aside.
In another medium bowl, combine egg, sugar, shredded zucchini and oil. Add zucchini mixture all at once to flour mixture. Stir just until moistened (batter should be lumpy). Fold in nuts. Spoon batter into prepared pan.
Bake for 50 to 55 minutes or until a wooden toothpick inserted near the center comes out clean. Cool in the pan on a wire rack for 10 minutes. Remove from pan. Cool completely on the rack. Wrap and store overnight before slicing.