[c#] What is the simplest way to get indented XML with line breaks from XmlDocument?

When implementing the suggestions posted here, I had trouble with the text encoding. It seems the encoding of the XmlWriterSettings is ignored, and always overridden by the encoding of the stream. When using a StringBuilder, this is always the text encoding used internally in C#, namely UTF-16.

So here's a version which supports other encodings as well.

IMPORTANT NOTE: The formatting is completely ignored if your XMLDocument object has its preserveWhitespace property enabled when loading the document. This had me stumped for a while, so make sure not to enable that.

My final code:

public static void SaveFormattedXml(XmlDocument doc, String outputPath, Encoding encoding)
{
    XmlWriterSettings settings = new XmlWriterSettings();
    settings.Indent = true;
    settings.IndentChars = "\t";
    settings.NewLineChars = "\r\n";
    settings.NewLineHandling = NewLineHandling.Replace;

    using (MemoryStream memstream = new MemoryStream())
    using (StreamWriter sr = new StreamWriter(memstream, encoding))
    using (XmlWriter writer = XmlWriter.Create(sr, settings))
    using (FileStream fileWriter = new FileStream(outputPath, FileMode.Create))
    {
        if (doc.ChildNodes.Count > 0 && doc.ChildNodes[0] is XmlProcessingInstruction)
            doc.RemoveChild(doc.ChildNodes[0]);
        // save xml to XmlWriter made on encoding-specified text writer
        doc.Save(writer);
        // Flush the streams (not sure if this is really needed for pure mem operations)
        writer.Flush();
        // Write the underlying stream of the XmlWriter to file.
        fileWriter.Write(memstream.GetBuffer(), 0, (Int32)memstream.Length);
    }
}

This will save the formatted xml to disk, with the given text encoding.

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What is the simplest way to get indented XML with line breaks from XmlDocument?