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°F 30 to 40 minutes or until cake browns and peaches are cooked.
Makes 12 servings.
1/2 cup butter or margarine
1 cup flour
1-1/2 cups sugar, divided
2 teaspoons baking powder
1/4 teaspoon salt
3/4 cup milk
12 Washington peaches, peeled and sliced
3/4 teaspoon ground nutmeg