Preheat oven to 350 degrees F.
In a small saucepan bring 1 1/2 cups water to a boil. Turn off heat, add chopped apricots and cherries to water, and cover pan. Let sit until fruit is softened, about 10 minutes. Strain the liquid reserving 1/2 cup; set fruit and reserved liquid aside to cool.
Butter and flour 2 (5 by 2 1/2-inch) loaf pans or 1 (8 1/2 by 4 1/2-inch) loaf pan; set aside. In a bowl, combine flour, baking powder, salt, baking soda, and nutmeg; set aside.
In the bowl of an electric mixer fitted with the paddle attachment, combine melted butter, sugar, egg, vanilla, reserved dried fruit, and reserved soaking liquid on medium speed. Add reserved flour mixture; mix until smooth. Pour batter into prepared loaf pans; smooth tops with spatula. Bake until golden brown, about 40 minutes for small loaves, or 50 minutes for large loaf. Transfer to wire rack to cool 5 minutes. Slide knife around the sides of loaves inside pans, then turn out onto rack; let cool. Loaves will keep wrapped in plastic wrap for 2 days at room temperature or in the freezer for up to 2 weeks.
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