In a small bowl, beat the egg, sugar and vanilla. Combine the flour, cinnamon, baking soda and nutmeg; add to egg mixture alternately with pineapple. Beat just until combined.
Pour into a 9-in. x 5-in. loaf pan coated with cooking spray. Bake at 350° for 30-35 minutes or until a toothpick inserted near the center comes out clean. Cool for 10 minutes before removing from pan to a wire rack to cool completely.
For frosting, in a small bowl, beat the cream cheese, butter and vanilla until fluffy. Gradually beat in confectioners' sugar until smooth. Spread over top and sides of cake; sprinkle with walnuts. Yield: 6 servings.