recipe help

I just made the following recipe for praline bread:
http://www.dianaskitchen.com/page/bread/praline.htm

can someone tell me about the wrapping in cheesecloth part a litte bit more? I don't understand what purpose it serves(keeps it moist maybe?) and at what point do you take the cheesecloth off? I wonder if it would hurt to skip this part. I am making little loaves of these to put in gift baskets. I would like to keep them in the little tins that I made them in....

I did an internet search on Praline Bread and every link called for cheesecloth wrapping.

thanks anyone who can help.