Preheat the oven to 400°F. Grease an 8-inch baking dish.
In a bowl, mix flour, sugar, baking powder, salt, and cinnamon if using.
Add milk and stir until combined.
Carefully fold in the peaches.
Pour the batter into the prepared baking dish.
For the topping, combine water, sugars, butter, and nutmeg in a saucepan. Bring to a boil, stirring until sugars dissolve.
Pour the syrup over the peach batter.
Bake for 40-50 minutes, until a toothpick inserted into the center comes out clean.
Let cool slightly before serving. Enjoy with vanilla ice cream if desired!