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Preheat the oven to 375 degrees F.
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Melt butter and pour into a 13- X 9-inch baking dish.
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Combine peach slices, lemon juice, and 1 cup sugar in a medium saucepan. Bring to a boil over medium-high heat, stirring constantly. Continue to cook for 2 minutes, or until most of the sugar has dissolved. Remove pan from the heat.
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Whisk together flour, remaining 1 cup sugar, baking powder, cinnamon, nutmeg, and salt in a medium bowl. Add milk and stir just until dry ingredients are moistened.
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Pour batter over melted butter. Do not stir.
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Pour peaches over batter. Do not stir.
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Bake for 40 to 45 minutes or until golden brown. Serve warm or at room temperature.