Step #1 Adjust the oven racks so that a pan of water will fit on the lowest rack & the cake can sit on a rack just above it & preheat the oven to 350 degrees F.
Step #2 Grease & flour a 10-inch tube pan & set aside.
Step #3 In the bowl of a mixer with a paddle attachment, cream together the butter & sugar.
Step #4 Add the eggs, 1 at a time, beating well after each addition.
Step #5 Sift the flour, baking powder, & salt into a clean bowl.
Step #6 With the mixer on low, slowly add the flour mixture to the butter mixture, alternately with the 2 tbsps of bourbon.
Step #7 Fold the nuts into the batter & pour the mixture into the prepared pan.
Step #8 Place a pan of water on the lowest oven rack & bake the cake on the rack just above the water for 1 hr & 10 mins, or until a toothpick inserted into the center, comes out clean.
Step #9 Cool the cake on a wire rack for 15 to 20 mins.
Step #10 Remove from the pan & allow cake to cool completely.
Step #11 While cake is cooling, soak enough cheesecloth to wrap around the cake in 1/4 c bourbon.
Step #12 When the cake has cooled, wrap the entire cake with plastic wrap, wrap the cheesecloth around the cake, & store this in the refrigerator.
Step #13 This cake is best if allowed to sit in the refrigerator for 1 to 2 weeks, rewetting the cheesecloth with bourbon as needed.
Step #14 I recommend rewetting the cheesecloth every 2 to 3 days, or as it dries out.