Preheat the oven to 375 degrees.

Cream the butter and sugar together until light and fluffy. Add the egg and beat well.

Combine the flour, cinnamon, baking powder, salt and nutmeg in a bowl.

Place ½ of the batter in the bottom of an 8-inch square baking dish. Add the peaches. Then top with the remaining batter.

Bake for 40-45 minutes until golden brown and bubbly.

Serve warm with vanilla ice cream or whipped cream.