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

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.