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Preheat oven to 350F. Pulse cranberries with 1/2
cup granulated
sugar in a food processor until finely chopped
(do not puree).
Transfer to a sieve and let drain while making
batter.
Sift together flour, baking powder, and salt. Beat
together butter
and remaining 1 1/4 cups granulated sugar in a
large bowl with an
electric mixer at medium-high speed until light
and fluffy, about 5
minutes with a standing mixer or about 8 minutes
with a handheld. Add
eggs 1 at a time, beating well after each addition,
then beat in
vanilla. Reduce speed to low and add flour mixture
and milk
alternately in batches, beginning and ending with
flour and mixing
until just incorporated.
Spread one third of batter evenly in well-buttered
loaf pan, then
spoon half of drained cranberries evenly over batter,
leaving a
1/2-inch border along sides. Top with another third
of batter and
remaining cranberries, leaving a 1/2-inch border
along sides, then
cover with remaining batter. Bake in middle of
oven until golden
brown and a tester inserted in center comes out
without crumbs, 1 to
1 1/4 hours. Cool cake in pan on a rack 30 minutes.
Invert cake onto rack. Serve warm or at room temperature.
