Preheat the oven to 350 degrees. Butter and lightly flour two 9 x 5 x 3 inch loaf pans. Set aside.
TO TOAST NUTS: Place the nuts on a baking sheet and bake for 8 - 10 minutes or until brown and fragrant. Cool completely, and then chop coarsely. Set aside.
CREAM CHEESE FILLING: In your food processor, process the cream cheese until smooth. Add the sugar and process just until smooth and creamy. Add the eggs one at a time, processing just until incorporated. Do not over process! Stir in the flour. Set aside.
PUMPKIN BREAD: In a large bowl, sift or whisk together the flour, baking powder, baking soda, salt, cinnamon, and nutmeg. Set aside.
In another large bowl, whisk the eggs until lightly beaten. Add the sugar and melted butter and whisk until blended. Whisk or stir in the pumpkin, water, vanilla extract, and nuts.
Add the flour mixture to the pumpkin mixture and stir just until the ingredients are combined. (A few streaks of flour is fine.) Do not over mix! Doing so will make the bread tough.
Divide the batter in half. Take one half and divide it evenly between the two prepared pans.
Divide the cream cheese filling in half and place each half of filling on top the two pans of batter, smoothing the tops.
Top with the remaining half of batter.
Bake the breads for about 50 - 60 minutes, or until a toothpick inserted into the center of the loaf comes out clean.
Place pans on a wire rack and let cool for about 10 minutes before removing breads from pans. Leftovers - if you have any! - should be stored in the refrigerator, or frozen for later use.