Prepare the Caramelized Zucchini: In a medium skillet, melt the 2 tablespoons of butter over medium heat. Add the grated zucchini and 1/4 cup of granulated sugar, stirring to combine. Cook, stirring frequently, until the zucchini becomes soft and starts to caramelize, about 5-7 minutes. The mixture should be golden and syrupy. Remove from heat and set aside to cool slightly.

Preheat Oven and Prepare Pan: Preheat your oven to 350°F (175°C). Prepare a 9x5-inch loaf pan by either buttering it generously or lining it with parchment paper to facilitate effortless removal later on.

Combine Dry Ingredients: In a large bowl, whisk together the flour, baking powder, baking soda, salt, cinnamon, and nutmeg. Set aside.

Mix Wet Ingredients: In another bowl, whisk together the melted butter, granulated sugar, and brown sugar until well combined. Incorporate the eggs individually, mixing thoroughly after each one, followed by the addition of vanilla extract.

Merge the Mixtures: Slowly introduce the dry ingredients into the wet batter, gently stirring until the two are barely combined. Take care not to overmix, as this will help maintain the bread's tenderness.

Fold in the Caramelized Zucchini: Gently fold the caramelized zucchini into the batter, ensuring it's evenly distributed.

Bake the Loaf : Pour the batter into the prepared loaf pan, smoothing the top with a spatula. Place in the oven and bake for 50 to 55 minutes, or until a toothpick inserted in the center emerges clean. Once done, let the bread rest in the pan for approximately 10 minutes before gently moving it to a wire rack to cool completely.