Preheat oven to 350 degrees. Mix the peaches, 1 cup sugar, 1/2 teaspoon cinnamon, 1/8 teaspoon nutmeg, and the water in a saucepan and bring to a light boil. Lower heat and let simmer for about 10 minutes. Meanwhile, cut up the butter and place in a 3 quart baking dish. Place it in the oven to allow butter to melt. In a mixing bowl, combine the flour and remaining sugar. Slowly stir in the milk, stirring well by hand.

Take the melted butter out of the oven and slowly pour the batter over it, covering the bottom of the dish. Do not stir! Carefully lay the fruit on top as though you were layering it and then carefully drizzle the syrup into the baking dish, but not all in one spot. Again, do not stir! The peaches will sink to the bottom and the crust will rise to the top, but ONLY if you use self-rising flour. Sprinkle remaining cinnamon over the top. Place in the oven and bake for approximately 40 minutes. (This is a slight variation of a recipe shared by Paula Deen.)