This article tackles the problem of predicting effort (in person-hours) required to fix a software defect posted on an Issue Tracking System. The proposed method is inspired by the Nearest Neighbour Approach presented by the pioneering work of Weiss et al. (2007) [1]. We propose four enhancements to Weiss et al. (2007) [1]: Data Enrichment, Majority Voting, Adaptive Threshold and Binary Clustering. Data Enrichment infuses additional issue information into the similarity-scoring procedure, aiming to increase the accuracy of similarity scores. Majority Voting exploits the fact that many of the similar historical issues have repeating effort values, which are close to the actual. Adaptive Threshold automatically adjusts the similarity threshold to ensure that we obtain only the most similar matches. We use Binary Clustering if the similarity scores are very low, which might result in misleading predictions. This uses common properties of issues to form clusters (independent of the similarity scores) which are then used to produce the predictions. Numerical results are presented showing a noticeable improvement over the method proposed in Weiss et al. (2007) [1].