Melt butter in 13 x 9 x 2-inch baking dish. Combine flour, 1 cup sugar, baking powder and salt; mix well. Add milk and stir only until moistened. Pour over melted butter. Top batter with sliced peaches. Combine remaining 1/2 cup sugar and nutmeg; mix well and sprinkle over peaches. Bake at 350 degrees F 30 to 40 minutes or until cake browns and peaches are cooked.

Recipe Courtesy of Washington State Fruit Commission.