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Preheat oven to 350°F.
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Filling: Mix peaches, sugar and flour together and pour into a 15-inch baking dish.
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Batter: Combine 2 cups flour, 1 cup sugar, baking powder, and salt in food processor. Process to combine. Add the milk and melted butter. Process until smooth.
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Spoon the batter over the peaches, making sure you spread to edge of dish. Sprinkle remaining 1 tablespoon sugar, nutmeg and cinnamon over the top.
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Bake in center of oven about one hour.
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Crust should be brown and crisp on the outside and cooked all the way through.
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Let cool for 10 minutes before serving.
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Serve with whipped cream or vanilla ice cream.