1Heat oven to 325°F. Grease 12-cup fluted tube cake pan with shortening or cooking spray.
2In large bowl, beat cake ingredients with electric mixer on low speed 30 seconds, scraping bowl constantly. Beat on medium speed 1 minute. Spoon into pan; spread evenly in pan.
3Bake 40 to 45 minutes or until toothpick inserted in center comes out clean. Cool 15 minutes; remove from pan. Cool completely, about 1 hour.
4Meanwhile, in 2-quart saucepan, mix sugar and cornstarch. Add cranberries and orange juice. Heat to boiling over high heat. Reduce heat to medium. Cook 7 to 8 minutes, stirring frequently, until mixture is thick and all cranberries have popped open. Stir in orange peel and 1/8 teaspoon nutmeg. Serve warm cranberry sauce with cake.