In a large bowl, combine sugar, flour and nutmeg. Add peaches; stir to coat. Pour into a greased 11x7-in. baking pan. , For topping, in a small bowl, combine sugar, flour, baking powder and salt; cut in the butter until the mixture resembles fine crumbs. Stir in egg. Spoon over peaches. , Bake at 375° for 35-40 minutes or until filling is bubbly and topping is golden. Serve hot or cold with ice cream if desired.