Preheat oven to 350 degrees F. Grease a 2 quart baking dish with non-stick spray.
Spread sliced peaches out in a single layer in prepared dish. Sprinkle tops of peaches with 2 Tablespoons sugar.
In a medium bowl, with an electric hand-mixer, beat 1 cup sugar and softened butter together until combined. Add flour, baking powder, salt (and nutmeg if using). Mix. Then add in egg and vanilla. Continue to beat and mix together until just combined. (Batter will be the consistency of cookie dough batter.)
Using a spatula, carefully spread batter over the tops of peaches. Trying to spread out as evenly as you can and covering most of the peaches. (I use my hands to help spread it too.)
Bake in preheated oven for 35 to 40 minutes or until crust is golden brown. Remove from oven and let stand 5 to 10 minutes before serving. Enjoy with vanilla ice cream or whipped cream!